Economics is a Social Science. Social sciences deal with interactions between people. Consequently, there are numerous variables. People cannot be put into test tubes, and controls in the hard science model are difficult or impossible. Nevertheless, like sciences such as meteorology where variables are many, controls are frequently impossible, and little can be replicated in a laboratory, methodology is similar.
- First we state the problem.
- We look to see what has been done before.
- We collect data.
- We classify the data.
- We analyze the data looking for correlations.
- We try to establish causation.
- We make recommendations for control of the phenomena.
- We publish and hope others will replicate our findings.