The methodology in economics is important, because it gives us a better understanding of the economic analysis. The purpose of the economic theory, is to provide a comprehensive framework for the study of human behavior', Gary Becker had declared (1976). As the aim of the economy, governments are to improve social welfare. The goal of welfare economics is to maximize 'the sum of utilities of individuals whose preferences are normally represented as greedy and selfish'. The distinction between positive and normative economics is not a recent question. Positive economic relates rather to sciences. It explains the economic view from the facts, thus it wants to be objective with 'declarative statements about the world'. David Hume's Guillotine says that normative economics is more about values and 'prescriptive evaluations of states of the world'. According to philosophical positivists, the main distinction is between 'is' and 'ought'.
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee