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DEFINITIONS OF ECONOMICS AND SOCIAL SCIENCE
One modern definition of Economics is;
The scientific study of the choices made by individuals and societies in regard to the alternative uses of scarce resources which are employed to satisfy wants.
This suggests that there is a lack of things in the world, clean-water, food, houses, roads, hotels, cars and so on. Humans devise systems to share out these scarce resources between themselves. Economists are interested in describing these systems and finding the best methods.
It might be argued that there is enough food, water, shelter, warmth and clothing to satisfy the world population. But, needs and wants are not the same thing and economists point out that even the richest people in the world still want more.
Another definition is Economics is what Economists do. John Maynard Keynes described what he thought economists do in Essays in Biography in 1933. An economist, he wrote, must possess a rare combination of gifts. He must be mathematician, historian, statesman, philosopher-in some degree. He must understand symbols and speak in words. He must contemplate the particular in terms off the general, and touch abstract and concrete in the same flight of thought. He must study the present in light of the past for purposes of the future. No part of man's nature or his institutions must lie entirely outside his regard. He must be purposeful and disinterested in a simultaneous mood; as aloof and incorruptible as an artist, yet sometimes as near the earth as a politician.
Here is another view. There appear to be three methods by which economic phenomena may be investigated, and each of them has its vigorous champions. The first consists mainly in deductive analysis. Proceeding from a few simple premises based upon general observation to broad generalizations. The second is the historical method, which seeks an understanding of existing institutions by tracing their evolutions from their origins in the past. The third is statistical induction, which endeavours, by the analysis of numerical data, to develop quantitative knowledge of economic phenomena. Luckily, the disputes which have been waged between the advocates of these different types of analysis do not have to be settled before economics can be defined, for the question of definition is one of subject matter rather, than of method. Anyway, it is now coming to be recognized that these methods are complementary rather than mutually exclusive.
Raymond T Bye, The Scope of Economics, Journal of Political Economy, 1939
One problem with the definition of economics in italics at the start of this page is that it does not allow a discussion of ethics. By using the term scientific in the definition we exclude opinions as to how resources should be allocated. For some economists this is over restrictive and a further distinction between positive and normative economics is needed.
Social science
Economics is classed as one of the social sciences. The social sciences are a loose grouping of subjects. What they have in common are that they study the behaviour of humans. The word behaviour distinguishes the social science from natural sciences. So Biology is not a social science as it is more concerned with the physical aspects of humans and plants. Other social sciences include: sociology, psychology, human geography, anthropology, politics.
By a science we mean that our work is positive rather than normative. Science is characterized by its methodology.
Karl Popper has provided one explanation of science. He suggests that scientists begin with observations of the real world, that they then make hypothesis (a plausible explanation), which they then proceed to test. The method of testing, Popper says, is not to prove the hypotheses - rather it is to try and disprove it. The scientist usually (but not always) designs experiments. If observations from the experiment disprove the theory then a new hypothesis is needed. If the experiments support the hypothesis then science has achieved a new theory or law.
Scientists and social scientists send off written accounts of their work to academic journals. For example, in economics the American Economic Review or the Journal of Economics, and in medical science the Lancet are leading publications. The editors of these journals then get other experts in the same field of study to check the work before it is published. Once published, scientists in universities all over the world read the papers and some of them will attempt to repeat the experiments to disprove or support the theory. This system is called peer-review. It is largely through this method that scientific theories and laws emerge.
Questions for thought
There are some philosophical questions about economics and about science. Economists and scientists are not in total agreement about the answers. For instance you might like to consider the following:
Can economists do experiments? Does the system of peer-review guarantee that all errors are avoided? Is economics really a science? What overlap is there between economics and other subjects? Is there any such thing as a scientific law? Can economics ever be free of opinions?
(c) C Rodda 2004
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