Economic processes in society are complex and confusing. To understand their trends, you have to go a long way. Methods of economic research and they are. They help to realize scientifically the truth of what is happening. The word "method" in Greek means "the path to the truth." Passing it, you can achieve the goal. With regard to the economy, the end result of the study is an understanding of the patterns in economic activity at the macro level. This will help to capture the perspective that the current principles of the system will lead to.
The essence of economic research methods
The economy in real life is very complex. On the scale of one state, there are many economic sectors, which, in turn, consist of many enterprises of various sizes. All these entities are interconnected by financial, organizational, technological dependencies. Changing the parameters of the activity of one enterprise can affect many other companies associated with it.
Each manufacturer has its own interests, and they are aimed at maximizing profits. In contrast to enterprises, consumers tend to purchase products of the highest quality at the lowest prices.
Consumer preferences are constantly changing. This all leads to fluctuations in the economy. In order not to get lost among the variety of factors affecting reality in the economic sphere, various methods of economic research are used. There are many ways to get the necessary knowledge on a topic of interest. There are a lot of ways to the goal, so you should consider them in more detail.
Research stages
Any field of science uses its techniques to collect data. In biology and medicine, a microscope is used for these purposes, in astronomy - a telescope. Economics involves the use of completely different methods.
The system of economic research involves the following sequence of actions.
- Observation of the object of economic research.
- Processing information received in the first stage. For this, many tricks are used. These include synthesis, analysis, analogy, induction, deduction, modeling, abstraction, comparison and analogy.
- Conducting experiments.
- The construction of logical and mathematical models.
For economic research, a certain number of methods are used. They can be universal or applicable to one industry.
Dialectics and metaphysics
Economics uses methods such as metaphysics and dialectics to obtain information about the object of study. The difference between these systems lies in their point of view on economic reality.
Metaphysics considers the factor outside the general system. At the time of the study, the phenomenon is at rest and does not change over time. This helps to understand the internal structure of the industry. A peculiarity of metaphysics is the fact that the results of economic research are obtained on the basis of disparate phenomena.
Dialectics has a greater approximation to reality. The results obtained by summarizing all processes suggest such an economic study.
The basis of dialectics are contradictions that appear in their inextricable unity. The interaction of opposites moves processes forward, like a motor. Dialectics avoids one-sided, flat judgments about reality.This contributes to the elimination of erroneous decisions.
In economics, the struggle of opposites (supply and demand, monopoly and competition, etc.) is one, and they must be considered in their inextricable interaction. In this case, the final result of the study is close to reality.
Data processing
After observing using the approaches considered, more specific tools should be considered to analyze the economy.
Apply specific and general scientific methods.
Specific approaches to the study of economic relationships are applicable to a particular industry. This is a more accurate analysis. In this case, general scientific approaches are adapted to the conditions of the object of study.
Quality methods
General scientific methods include historical, logical, mathematical, statistical approaches.
The historical method considers the origins of the economic processes. This allows you to understand the state of the system at different time periods. The economy is not something historically unchanged. The historical approach does not allow revealing typical features of the system.
The logical method helps to penetrate into causal relationships. Objective logic helps to understand the laws of processes.
These two methods will allow you to evaluate the system in terms of its qualities. But modern approaches also seek to identify the number of factors affecting the system.
Quantitative methods
Quantitative methods for studying processes include economic, mathematical, and statistical research methods.
In an effort to generalize a certain number of phenomena and factors, modern economic science resorts to mathematical expressions of indicators. For a certain amount of time, the studied factors change their value. Statistics are used to evaluate these changes.
Mathematical techniques allow you to calculate the quantitative changes in indicators that affect the result of the study. To do this, conducting basic economic research, the relevant indicators are grouped into a single system. This allows us to conclude that each of them affects the final result.
Economic, mathematical and statistical methods are an integral part of the study.
The study of economic relations
After collecting information, it is analyzed and processed. This helps to draw conclusions about reality and predict the course of events.
The Institute of Economic Research applies all sorts of techniques to build an overall picture of reality. In addition to the descriptive stage of the study, cognition of the connections between the elements is used. To do this, use the method of scientific abstraction, deduction, induction, analogy.
Economic theories are generated by creating a model of reality. Bringing the existing relationship to a single predictable principle of functioning is the main technique in achieving the goals of economic research.
By developing a template by which the system works, you can understand the state of the entire system. This is comparable to a blood test. By a small amount of biomaterial, the laboratory assistant can judge the state of the whole organism and predict its condition in the future.
The method of scientific abstraction
The presented method allows you to create a model of economic reality by eliminating non-essential factors.
The object of economic research in scientific abstraction is cleared of many private, short-term, individual characteristics.
At the end of this process, only the most reliable economic ties, only frequently occurring processes, are left for research.
Clear boundaries of abstraction do not exist. No rules have been established regarding the extent to which the object of study is generalized.If you delve into the cutting off of non-essential factors of the system, you can also dismiss indicators that affect the result of the study. Therefore, the depth of abstraction is determined intuitively, based on experience and general knowledge of the processes.
Deduction and induction
Induction and deduction complement each other. The goals of economic research are achieved by formulating hypotheses. Induction involves the formation of general principles and provisions based on private indicators. Disparate facts are reduced to theories and laws.
Deduction applies a different philosophy. Collecting data on general provisions, the state of a certain economic object is explained. Deduction puts forward a hypothesis and tests it for correctness. If real facts fit into the assumption put forward, it is considered successful. On this basis, scientific theories are developed.
Basic time-limited economic studies are carried out using the deductive method.
Models
In order to simplify economic reality, abstract models are made for clarity.
Based on the topics of economic research, models can be presented in mathematical form, in the form of graphs or tables.
The Institute for Economic Research supplements the conclusions about the analysis of indicators with visual expressions of their relationships. The most popular of them is the chart. Words become more convincing when they are supplemented by a picture of the dynamics of factors affecting the result.
The table helps to compare the quantitative indicators of the model. Using formulas express the economic and mathematical dependencies of the system.
Marginal analysis method
The relationship between the interacting elements of the system is sometimes evaluated by the method of limit analysis.
The limiting value in the presented approach acts as an additional indicator. This may be additional income of the enterprise, additional costs, etc.
When making sales of an additional unit of goods, the additional costs of its manufacture also increase. The essence of the method of limit analysis is to compare such quantities.
Depending on the topic of economic research, factors are increased to a maximum. If the ratio of marginal cost and marginal revenue it will be more profitable than the indicators existing in reality; it is advisable for the enterprise to increase the volume of production. If marginal costs begin to exceed marginal benefits, an increase in turnover is unprofitable.
Research errors
Modeling processes in the economy sometimes makes a number of mistakes. These are false statements arising from the logical paths of searching for a real picture of an object.
Among the most common mistakes are the false construction of evidence, as well as the false conclusion. Such situations should be taken into account during the research process.
The erroneous modeling of the evidence follows from the false assumption "what is good for one will suit the other." A good example of such a situation is the increase in salaries at one enterprise. This led to an increase in the consumer ability of its employees. But this does not mean at all that with an increase in salaries at all enterprises, people will be able to buy more goods. The latter will lead to higher prices and inflation. Purchasing power will remain the same.
The second mistake is the false construction of the investigation, the cause. This happens when the third factor C is missed or a random (non-systemic) change from A to B. For example, an increase in car prices led to an increase in sales. This is against the law of demand. In the car example, the inflation index is not taken into account, which caused the growth of consumption with increasing prices.
Therefore, when building economic models, maximum attention should be paid to all factors.
Research results
Existing methods of economic research to a greater or lesser extent contribute to the knowledge of factors and their interaction in the system.
Having obtained the result in the course of a comprehensive analysis of indicators and having gone one way or another to a theoretical conclusion, it is checked in practice.
In order to avoid a large-scale error, which will be difficult to correct, an experiment should be conducted.
It is not always possible to verify in practice the correctness of the theory without causing consequences among market relations. However, finding the right statement, it is possible to achieve the main goal of economic research - forecasting and optimizing the process in the planning period.
Having become acquainted with the basic approaches that are used to comprehend economic reality, one can gain an understanding of the connections between the elements of the system. The problems of the economic organization of society do not tolerate frivolity and groundlessness in their solution. Economic research methods used in the analysis will help minimize the risk of erroneous decisions in the field of market process management. Mistakes made on the path to knowing the truth can be very expensive at the level of macroeconomic relations.
