Theory vs. reality in economics
The starting point of this article is that economics is an applied science. It is a tool for understanding real-world economics and a guide for economic policy. Economic theory must start at the real world – the assumptions must be realistic – and the destination point must also be the real world. T...
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| Formato: | Artículo revista |
| Lenguaje: | Español |
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Facultad de Ciencias Económicas de la Universidad Nacional del Nordeste - UNNE
2024
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| Acceso en línea: | https://revistas.unne.edu.ar/index.php/rfce/article/view/7899 |
| Aporte de: |
| Sumario: | The starting point of this article is that economics is an applied science. It is a tool for understanding real-world economics and a guide for economic policy. Economic theory must start at the real world – the assumptions must be realistic – and the destination point must also be the real world. The selection of assumptions plays a fundamental role if economic theory is to serve the purpose of interpreting reality. The key issue is the similarity between the theoretical model and the real world. Economic phenomena occur over time. The temporal dimension of economic phenomena cannot be ignored. The evolutionary approach aims to analyze the economy as the result of a dynamic process that leads from known or plausibly conjectured initial conditions in the past to the reality under analysis. |
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