Information about Positive Economics
Positive economics is the branch of economics that concerns the description and explanation of economic phenomena (Wong, 1987, p. 920). It focuses on facts and cause-and-effect relationships and includes the development and testing of economics theories. Earlier terms were value-free economics and its German counterpart wertfrei economics. These terms were challenged as persuasive rather than descriptive.
Positive economics as science (Robbins, 1932) concerns analysis of economic behavior. A standard theoretical statement of positive economics as operationally meaningful theorems is in Paul Samuelson (1947). Positive economics as such avoids economic value judgments. For example, a positive economic theory might describe how money supply growth affects inflation, but it does not provide any instruction on what policy should be followed.
Still, positive economics is commonly deemed necessary for the ranking of economic policies or outcomes as to acceptability (Wong, 1987, p. 921), which is normative economics. Positive economics is sometimes defined as the economics of "what is", whereas normative economics discusses "what ought to be". The distinction was exposited by John Neville Keynes (1891) and elaborated by Milton Friedman in an influential 1953 essay.
The metholodogical basis for a positive/normative distinction has its roots in the fact-value distinction in philosophy, the principal proponents of such distinctions being David Hume and G. E. Moore. The logical basis of such distinctions has been disputed in the philosophical literature. Such debates are reflected in discussion of positive science and specifically in economics, where critics, such as Gunnar Myrdal (1954) dispute the idea that economics can be completely neutral and agenda-free.
Behavior or behaviour
..... Click the link for more information.
Positive economics as science (Robbins, 1932) concerns analysis of economic behavior. A standard theoretical statement of positive economics as operationally meaningful theorems is in Paul Samuelson (1947). Positive economics as such avoids economic value judgments. For example, a positive economic theory might describe how money supply growth affects inflation, but it does not provide any instruction on what policy should be followed.
Still, positive economics is commonly deemed necessary for the ranking of economic policies or outcomes as to acceptability (Wong, 1987, p. 921), which is normative economics. Positive economics is sometimes defined as the economics of "what is", whereas normative economics discusses "what ought to be". The distinction was exposited by John Neville Keynes (1891) and elaborated by Milton Friedman in an influential 1953 essay.
The metholodogical basis for a positive/normative distinction has its roots in the fact-value distinction in philosophy, the principal proponents of such distinctions being David Hume and G. E. Moore. The logical basis of such distinctions has been disputed in the philosophical literature. Such debates are reflected in discussion of positive science and specifically in economics, where critics, such as Gunnar Myrdal (1954) dispute the idea that economics can be completely neutral and agenda-free.
See also
- Normative economics
- Consumer theory
- Production possibilities frontier
- Supply and demand
- Distribution (economics)
- Economic methodology
References
- Milton Friedman (1953). "The Methodology of Positive Economics," Essays in Positive Economics
- Daniel M. Hausman and Michael S. McPherson (1996). Economic Analysis and Moral Philosophy, "Appendix: How could ethics matter to econonics?", pp. 211-20:
- :A.2: Objection 2: Positive economics is value-free
- :A.3: How positive economics involves morality
- John Neville Keynes (1891). The Scope and Method of Political Economy
- Gunnar Myrdal (1954 [1929]). The Political Element in the Development of Economic Theory, trans. Paul Streeten (Cambridge, MA: Harvard University Press).
- Lionel Robbins (1932). An Essay on the Nature and Significance of Economic Science
- Paul A. Samuelson (1947, Enlarged ed. 1983). Foundations of Economic Analysis
- Stanley Wong (1987). “positive economics," The , v. 3, pp. 920-21
External links
- Milton Friedman ([1953] 1966). "The Methodology of Positive Economics," excerpts from Friedman's essay
Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Greek for oikos (house) and nomos (custom or law), hence "rules of the house(hold).
..... Click the link for more information.
..... Click the link for more information.
Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Greek for oikos (house) and nomos (custom or law), hence "rules of the house(hold).
..... Click the link for more information.
..... Click the link for more information.
German language (Deutsch, ] ) is a West Germanic language and one of the world's major languages.
..... Click the link for more information.
..... Click the link for more information.
A persuasive definition is a form of definition which purports to describe the 'true' or 'commonly accepted' meaning of a term, while in reality stipulating an uncommon or altered use, usually to support an argument for some view, or to create or alter rights, duties or crimes.
..... Click the link for more information.
..... Click the link for more information.
Science (from the Latin scientia, 'knowledge'), in the broadest sense, refers to any systematic knowledge or practice.[1] Examples of the broader use included political science and computer science, which are not incorrectly named, but rather named according to
..... Click the link for more information.
..... Click the link for more information.
Lionel Robbins' Essay (1932, 2nd ed., 1935, 158 pp.) sought to define more precisely economics as a science and to coax substantive implications. Analysis is relative to "accepted solutions of particular problems" based on best modern practice as referenced, especially including
..... Click the link for more information.
..... Click the link for more information.
This article or section is written like a personal reflection or and may require .
Please [ improve this article] by rewriting this article or section in an . (, talk)
Please [ improve this article] by rewriting this article or section in an . (, talk)
Behavior or behaviour
..... Click the link for more information.
Falsifiability (or refutability or testability) is the logical possibility that an assertion can be shown false by an observation or a physical experiment. That something is "falsifiable" does not mean it is false; rather, it means that it is capable of being
..... Click the link for more information.
..... Click the link for more information.
Paul Samuelson
Born May 15 1915, age 92
Gary, Indiana
Residence U.S.
..... Click the link for more information.
Born May 15 1915, age 92
Gary, Indiana
Residence U.S.
..... Click the link for more information.
Foundations of Economic Analysis is a book by Paul A. Samuelson published in 1947 (Enlarged ed., 1983). It sought to demonstrate a common mathematical structure underlying multiple branches of economics from two basic principles: optimizing behavior of agents and stability of
..... Click the link for more information.
..... Click the link for more information.
This article or section is in need of attention from an expert on the subject.
Please help recruit one or [ improve this article] yourself. See the talk page for details.
..... Click the link for more information.
Please help recruit one or [ improve this article] yourself. See the talk page for details.
..... Click the link for more information.
The word theory has a number of distinct meanings in different fields of knowledge, depending on their methodologies and the context of discussion.
In common usage, people often use the word theory to signify a conjecture, an opinion, or a speculation.
..... Click the link for more information.
In common usage, people often use the word theory to signify a conjecture, an opinion, or a speculation.
..... Click the link for more information.
worldwide view of the subject.
* Its tone or style may not be appropriate for Wikipedia.
Please help [ improve the article] or discuss these issues on the talk page.
..... Click the link for more information.
* Its tone or style may not be appropriate for Wikipedia.
Please help [ improve the article] or discuss these issues on the talk page.
..... Click the link for more information.
Inflation is measured as the growth of the money supply in an economy, without a commensurate increase in the supply of goods and services. This results in a rise in the general price level as measured against a standard level of purchasing power.
..... Click the link for more information.
..... Click the link for more information.
policy is a deliberate plan of action to guide decisions and achieve rational outcome(s). The term may apply to government, private sector organizations and groups, and individuals.
..... Click the link for more information.
..... Click the link for more information.
Normative economics is the branch of economics that incorporates value judgments about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal.
..... Click the link for more information.
..... Click the link for more information.
John Neville Keynes (31 August 1852 - 15 November 1949) was a British economist and father of John Maynard Keynes.
..... Click the link for more information.
Biography
Born in Salisbury, he was the son of Dr John Keynes and his wife Anna Maynard Neville...... Click the link for more information.
Milton Friedman
Born July 31 1912
Brooklyn, New York City
Died November 16 2006 (aged 94)
..... Click the link for more information.
Born July 31 1912
Brooklyn, New York City
Died November 16 2006 (aged 94)
..... Click the link for more information.
Milton Friedman's book Essays in Positive Economics (1953) has as its lead an original essay "The Methodology of Positive Economics," on which this article focuses.
..... Click the link for more information.
The Methodology of Positive Economics
..... Click the link for more information.
disputed.
The information may have been removed or included by an editor as a result.
Please see discussion on the considering whether its inclusion is warranted.
..... Click the link for more information.
The information may have been removed or included by an editor as a result.
Please see discussion on the considering whether its inclusion is warranted.
..... Click the link for more information.
David Hume (April 26, 1711 – August 25, 1776)[1] was a Scottish philosopher, economist, and historian. He is considered one of the most important figures in the history of Western philosophy and the Scottish Enlightenment.
..... Click the link for more information.
..... Click the link for more information.
George Edward Moore, usually known as G. E. Moore, (November 4 1873 – October 24 1958) was a distinguished and influential English philosopher who was educated at Dulwich College[1] and went on to study, and later teach, at the University of Cambridge.
..... Click the link for more information.
..... Click the link for more information.
In the humanities and social sciences, the term positive is used in a number of ways.
One usage refers to analysis or theories which only attempt to describe how things are, as opposed to how they should be. In this sense, the opposite of positive is normative.
..... Click the link for more information.
One usage refers to analysis or theories which only attempt to describe how things are, as opposed to how they should be. In this sense, the opposite of positive is normative.
..... Click the link for more information.
Karl Gunnar Myrdal (December 6, 1898 – May 17, 1987) was a Swedish economist and politician. He was born in Gustafs, Dalarna, and died in Danderyd, close to Stockholm.
..... Click the link for more information.
..... Click the link for more information.
Normative economics is the branch of economics that incorporates value judgments about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal.
..... Click the link for more information.
..... Click the link for more information.
Consumer theory is a theory of economics. It relates preferences (through indifference curves and budget constraints) to consumer demand curves. The models that make up consumer theory are used to represent prospectively observable demand patterns for an individual
..... Click the link for more information.
..... Click the link for more information.
In economics, a production possibilities frontier (PPF) or “transformation curve” is a graph that shows the different quantities of two goods that an economy (or agent) could efficiently produce with limited productive resources.
..... Click the link for more information.
..... Click the link for more information.
supply and demand describe market relations between prospective sellers and buyers of a good. The supply and demand model determines price and quantity sold in the market.
..... Click the link for more information.
..... Click the link for more information.
Distribution in economics refers to the way total output or income is distributed among individuals or among the factors of production (labor, land, and capital) (Samuelson and Nordhaus, 2001, p. 762).
..... Click the link for more information.
..... Click the link for more information.
Economic methodology is the study of scientific method in relation to economics. The term 'methodology' is also commonly, though incorrectly, used as an impressive synonym for 'method' or technique.
..... Click the link for more information.
..... Click the link for more information.
This article is copied from an article on Wikipedia.org - the free encyclopedia created and edited by online user community. The text was not checked or edited by anyone on our staff. Although the vast majority of the wikipedia encyclopedia articles provide accurate and timely information please do not assume the accuracy of any particular article. This article is distributed under the terms of GNU Free Documentation License.
Herod_Archelaus
