Economics: An Applied Science?

Florian Libocor ()
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Florian Libocor: Romanian Academy, National Institute for Economic Research “Costin C. Kirițescu”

Chapter Chapter 2 in Transformational Drivers of National Economies: A New Analytical Framework Addressing Transitional Growth Model, 2026, pp 41-55 from Springer

Abstract: Abstract Economics can be considered an applied science due to its use of the scientific method, practical applicability, and interdisciplinary tools. By constructing theories, developing economic models, and testing them with empirical data, economics aims to understand and solve real-world issues such as inflation, unemployment, and resource allocation. It also enables the formulation of more effective economic policies, improves business competitiveness, and reduces market inefficiencies. However, some arguments suggest that economics is not strictly an applied science. The unpredictability of human behaviour, reliance on simplified assumptions, and difficulty in conducting controlled experiments make economic models less precise than those in the exact sciences. Ideological and social influences affect economic interpretations, while the variability of results and lack of replicability further differentiate economics from other applied sciences. Thus, economics can be seen as a hybrid discipline, combining empirical analysis with an understanding of social dynamics. Although it shares characteristics with applied sciences, its limitations align it more closely with the social sciences; the unpredictability of human behaviour makes economics a less precise and more complex science than other applied sciences.

Keywords: Economics; Applied science; Scientific method; Economic models; Human behaviour; Policy making; Interdisciplinary approach (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-032-18962-2_2

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DOI: 10.1007/978-3-032-18962-2_2

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