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Methods of Research in Economics

Economics in the study of economic processes uses certain methods. Methods of research in the economy are ways and means of studying certain phenomena.

Methods of research in economics, as in any other branch of knowledge, divided into general (philosophical) general scientific (historical, logical, etc.) and specific for the economy.

In this science, such methods are widely usedas functional analysis, analysis and synthesis, scientific abstraction, induction and deduction, hypothesis advancement and testing, experimentation, modeling, etc.

The method of scientific abstraction reduces to the purification of the studied object fromparticulars, any accidents and the allocation of typical, permanent and essential features and characteristics. As a result of using this method, categories and concepts are derived that reflect the most important aspects of the objects under study, as well as economic laws reflecting the permanent cause-effect relationships existing between the phenomena of the economy.

Method of graphic images allows you to visualize certain economic dependencies. As a rule, economists put independent data (variables) on the ordinate axis, and dependent ones, respectively, on the abscissa axis.

Functional Analysis helps establish relationships and dependenciesbetween economic processes and phenomena, when some factors act as exogenous (independent), and others as endogenous (derivatives of the first group).

Research methods in economics are widely usedconomic-mathematical modeling, which today is one of the mostwidespread methods of studying the problems of the economy. It allows you to identify the causes, consequences, patterns of processes. Economic models help to describe reality in a simplified form, they are an abstract generalization with the help of graphs, equations and it is necessary to clearly describe the interrelations between economic variables. Models help to better understand the phenomena of economic reality, because they do not include many secondary details that complicate the vision of the essence of processes and the connections between them.

Mathematical methods of research in economicsare quite complex, because the economy is a multidimensional system in which most processes are of a probabilistic nature and depend on many factors.

Marginal (marginal) analysis is used to study economiccategories and laws. The essence of the analysis is reduced to an increment of the economic indicator, caused by an increase by one unit of the factor on which this indicator depends. Such an increase is characterized by marginal revenue, marginal product, marginal utility, and so on.

Experimentation used for artificial reproductioneconomic processes and phenomena so that they can be studied "near". However, this method requires caution, since it is unacceptable to break down natural processes, putting real life in artificial designs.

In economic theory apply statistical methods of research of an economic conjuncture. These methods are necessary in the work of analystsAs a diagnostic tool for the purpose of making correct management decisions. The conjuncture is a situation that has developed at a certain point in a certain sphere of economic life. It is about the specific conditions of the production process, the situation in the markets, etc. In the framework of the application of this method, methods of calculating absolute and relative effectiveness are used, and index and balance methods are used.

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