Question

Compare and contrast German Historicals School's inductive method with Marginalist's deductive method . By using an example, discuss why both methods were finally accepted as complementary to each other.

Answer 1

The German Historical School rejects the method of classical political economy. The thoughts of the school considered economics as a broad science which the connection between political, ethical and historical issues was taking into consideration. The school considered the empiricism and the induction. The inductive method will helps to find proper conclusion regarding the study. It will take specific observation to make general conclusions. The most important benefit of inductive method is establishing probability. The observations will determine the premises are true or not.
The Marginalist made several changes in economics. They tried to apply the implication of theory of value. They give focus to microeconomics. They adopt the deductive method. This will help to find and explain casual relation between concepts and variables. There is quantitative measurement of the variables. Findings were based on existing theories.
Both of the approach used as complement for each other. In deductive approach the researcher considers the past and present theories. Relevant theories are not considered at the beginning of inductive study. Most of the findings in inductive methods are emerged from observation which used for qualitative research. With respect to the problem to study, the selection of the methods changed.