A Comparative Analysis of Selected Economic Methodologies: Praxeology, Positivism and Institutionalism

Abstract

Explicates and analyses selected economic methodologies: praxeology, positivism and institutionalism. Praxeology is a rationalistic methodology which utilizes deductive logic to deduce conclusions concerning economic behavior from postulates, which are self‐evident truths, but praxeologists deny that empirical verification is either necessary or desirable. Positivism is a methodology which combines deductive rationalism as a method of deriving substantive hypotheses and inductive empiricism as a method of verifying these hypotheses. Institutionalism is a pragmatic methodology which is based on an empirical epistemology and which utilizes inductive logic to formulate economic policy and to solve practical problems. Concludes that institutionalism is more empirically relevant than either praxeology or positivism, and that, therefore, institutionalism is superior to the other methodologies.

Citation

Hill, L.E. (1992), "A Comparative Analysis of Selected Economic Methodologies: Praxeology, Positivism and Institutionalism", International Journal of Social Economics, Vol. 19 No. 10/11/12, pp. 208-221. https://doi.org/10.1108/EUM0000000000513