An Introduction to the Economic Method

Abstract

A sample of leading introductory economics textbooks reveals that most devote little space to the method of analysis used by mainstream economists. A thorough introductory treatment of the subject must consist of more than a brief description of the scientific method. Introductory students must gain an understanding of the important elements of a model, the need to simplify, the difference between induction and deduction and the relationship between real world facts, a model, economic policy and policy goals. This paper offers some ideas on how to accomplish this objective and presents a schematic diagram that can be used to frame the discussion.