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    Deductive & Inductive Approach

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    mahesh
    The deductive approach involves reasoning from general principles or laws to specific conclusions, taking a few general principles and applying them to derive conclusions. It involves selecting a problem, forming assumptions, developing a hypothesis through logical deduction, and testing and verifying the hypothesis. The main benefits are that it is real, simple, powerful and exact. The limitations are that it is abstract, static, can involve incorrect verification, unrealistic assumptions, and may not be universally applicable. The inductive approach involves reasoning from specific facts and data to broader generalizations and conclusions. It involves defining a problem, collecting and analyzing data, making observations from the data, developing a hypothesis, and generalizing conclusions from the particular facts. The benefits are that it is realistic

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    Deductive & Inductive Approach

    Uploaded by

    mahesh
    166 views5 pages
    The deductive approach involves reasoning from general principles or laws to specific conclusions, taking a few general principles and applying them to derive conclusions. It involves selecting a problem, forming assumptions, developing a hypothesis through logical deduction, and testing and verifying the hypothesis. The main benefits are that it is real, simple, powerful and exact. The limitations are that it is abstract, static, can involve incorrect verification, unrealistic assumptions, and may not be universally applicable. The inductive approach involves reasoning from specific facts and data to broader generalizations and conclusions. It involves defining a problem, collecting and analyzing data, making observations from the data, developing a hypothesis, and generalizing conclusions from the particular facts. The benefits are that it is realistic

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    The deductive approach involves reasoning from general principles or laws to specific conclusions, taking a few general principles and applying them to derive conclusions. It involves selecting a problem, forming assumptions, developing a hypothesis through logical deduction, and testing and verifying the hypothesis. The main benefits are that it is real, simple, powerful and exact. The limitations are that it is abstract, static, can involve incorrect verification, unrealistic assumptions, and may not be universally applicable. The inductive approach involves reasoning from specific facts and data to broader generalizations and conclusions. It involves defining a problem, collecting and analyzing data, making observations from the data, developing a hypothesis, and generalizing conclusions from the particular facts. The benefits are that it is realistic

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    166 views5 pages

    Deductive & Inductive Approach

    Uploaded by

    mahesh
    The deductive approach involves reasoning from general principles or laws to specific conclusions, taking a few general principles and applying them to derive conclusions. It involves selecting a problem, forming assumptions, developing a hypothesis through logical deduction, and testing and verifying the hypothesis. The main benefits are that it is real, simple, powerful and exact. The limitations are that it is abstract, static, can involve incorrect verification, unrealistic assumptions, and may not be universally applicable. The inductive approach involves reasoning from specific facts and data to broader generalizations and conclusions. It involves defining a problem, collecting and analyzing data, making observations from the data, developing a hypothesis, and generalizing conclusions from the particular facts. The benefits are that it is realistic

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    Deductive Approach

    The deductive method is also named as analytical, abstract or prior


    method.
    Deduction Means reasoning or inference from the general to
    the particular or from the universal to the individual.
    It involves the process of reasoning from certain laws or
    principles, which are assumed to be true, to the analysis of
    facts.
    Bacon described deduction as a “descending process”
    Mill characterised it as a priori method,
    while others called it abstract and analytical.
    The deductive method consists in deriving conclusions from general truths,
    takes few general principles and applies them draw conclusions.

    The main steps involved in the application of Deductive method are:


    (i) selecting the problem.
    It may be very wide like poverty, unemployment, inflation, etc. or narrow
    relating to an industry.
    (ii) Formation of Assumption
    The next step in deduction is the framing of assumptions which are the
    basis of hypothesis.
    To be fruitful for enquiry, the assumption must be general.
    In any economic enquiry, more than one set of assumptions should be
    made in terms of which a hypothesis may be formulated.
    (iii) Formation of hypothesis.
    The next step is to formulate a hypothesis on the basis of logical reasoning
    whereby conclusions are drawn from the propositions.
    This is done in two ways:
    First, through logical deduction. If and because relationships (p) and
    (q) all exist, then this necessarily implies that relationship (r) exists as
    well.
    Mathematics is mostly used in these methods of logical deduction.
    (iv) Testing Verification.
    The final step in the deductive method is to test and verify the hypothesis.
    For this purpose, economists now use statistical and econometric methods.
    Verification consists A hypothesis is true or not can be verified by
    observation and experiment

    Merits

    Real
    Simple
    Powerful
    Exact
    Universal

    Demerits
    Abstract Method
    Static Method
    Incorrect Verification
     Unrealistic Assumption
    Not Universally Applicable
    Intellectually
    Inductive Approach
    Inductive method which also called empirical method was adopted by the
    “Historical School of Economists".

    It involves the process of reasoning from particular facts to general


    principle.

    In this method, data is collected about a certain economic phenomenon.

    These are systematically arranged and the general conclusions are drawn
    from them.

    Bacon described it as “an ascending process” 


    1. The Problem:
    In order to arrive at a generalisation concerning an economic
    phenomenon, the problem should be properly selected and
    clearly stated.
    2. Data:
    The second step is the collection, enumeration, classification
    and analysis of data by using appropriate statistical
    techniques.
    3. Observation:
    Data are used to make observation about particular facts
    concerning the problem.

    4. Formation of hypothesis.
    The next step is to formulate a hypothesis on the basis of logical reasoning
    whereby conclusions are drawn from the propositions.

    5. Generalisation:
    On the basis of observation, generalisation is logically derived
    which establishes a general truth from particular facts.

    6.Verification:
    Verification consists A hypothesis is true or not can be verified by
    observation and experiment
    Merits

    1. Realistic
    2. Statistical method
    3. Dynamic
    4.Future Enquiries
    5. Histrico-Relative

    Demerits :

    1. Misenterpretation of Data:
    2. Uncertain Conclusions:
    3. Lacks Concreteness:
    4. Costly Method:
    5. Difficult to Prove Hypothesis:
    6. Controlled Experimentation not Possible in Economics

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