Methods of Economics

Method: It is the procedure or reasoning that is followed to discover the truth and obtain laws, principles and theories with which Economics explains economic reality. The methods that Economics uses are:
These are the most used methods in economics

h) Geographic Method

This method consists of first analyzing particular cases and then formulating a general law. It has three stages:
1º The analysis and comparison of the facts.
2º The formulation of the hypothesis by which the results of the experiences are generalized
3º The verification of the formulated hypothesis, which if achieved is elevated to the category of law.
It was created in 1615 by Francis Bacon.
This method consists of starting from a general law to arrive at the study of particular cases. It includes three stages:
1st Formulation of a general principle or law.
2nd Comparative study of particular cases.
3rd Verification of the stated principle.
It was created by Aristotle 300 BC
The dialectical method consists of the study of the contradictions that generate history, following a three-stage process:
It was created by Hegel, it has its most remote origin in Greece.


The development of mathematical methods in economics is a necessary condition for carrying out complicated economic calculations on modern calculating machines. With the help of the aforementioned methods; The terms of economic problems are formulated so that they can be solved on calculating machines.
1. Graphs and equations
2. Representation and solution of system of equations
4. Nonlinear relationships and elasticities
Statisticians are currently faced with the challenge of providing methods to extract, understand and interpret complex and massive data. The Research Group focuses its work mainly on combining cross-sectional studies with longitudinal follow-up.
1. Develop the ability to understand and apply the main concepts of probability and statistics to the economic field, differentiating between two types of data: controlled and uncontrolled.
2. Use probabilistic models and statistical procedures to describe and analyze economic problems
3. Pose and solve economic problems of statistical inference.
To analyze any phenomenon, even of nature, of society and of thought, it is decisive, essential, we would say, to examine it through the historical method.
The historical method tells us that every reality has a past, present and future. And these three dimensions of reality are closely related; the future, for example, depends on the present; the present has depended on the past. Consequently, the future depends on the past.
The Economy as a natural, social and cognitive reality or knowledge, does not escape its historical reality.
Like any reality, despite the redundancy, the Economy is also a whole, a totality. In this whole, at moments of its development, certain partial elements dominate within the entire economic movement. These elements that are part of the economic whole stand out, they lead processes; and for the purposes of thinking about reality we extract, highlight and represent the elements that seem most important to us.
Economic psychology tries to identify the economic behavior of human beings as a factor closely linked to emotions and provide the necessary guidance to improve their decision-making.
1. Planning and organization of the process.
2. Motivation of objectives and understanding of content.
3. Mastery of content.
4. Systematization of contents.
5. Learning evaluation.
Economic Geography tries to explain the connections between economic activities—those related to obtaining material goods and services intended to satisfy human needs—and the territory in which they are located. In parallel, Regional Economy or Spatial Economy also emerged, which develops a similar theme. In any case, while geographers give priority to territory, economists do so with the different micro and macroeconomic variables (supply, demand, prices…):
– It is the spatial point of view that distinguishes economic geography as a field of study of economics, although both are involved in the study of economic systems;
– Economic geography attempts to explain the distribution of the facts of production, distribution and consumption. To better capture them, use the categories proposed by economists, specifying the way in which space models or modifies them.

Economic Geography It also analyzes and assesses the effects of the different economic policies applied to the territory, especially those that try to promote regional or local development, or achieve a more effective organization of activities to avoid negative impacts in urban or environmental matters.

In short, this discipline tries to discover the interrelationships established between economy and territory. In general terms, it tries to describe the economic structure, which is influenced by factors such as the natural conditions of the environment, historical inheritances, characteristics of the population, political organization, social relations and cultural patterns.