Chapter

Method, Dynamics, and Statics

John Hicks

in Methods of Dynamic Economics

Published in print October 1987 | ISBN: 9780198772873
Published online November 2003 | e-ISBN: 9780191596438 | DOI: http://dx.doi.org/10.1093/0198772874.003.0001
 Method, Dynamics, and Statics

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This chapter defines the terms methods and models. A method is a family or class of models. A model is a piece of theory, a theoretical construction, which is intended to be applied to a certain range of facts. Models may thus be classified according the facts to which they are intended to refer; so there are models of international trade, of labour relations, of the money market, and so on. But a class of models, when the grouping was of this character, would not at all conveniently be called a method. The definition of ‘economic dynamics’ must follow from the definition of ‘economic statics’: when we have defined one, we have defined the other. A static condition is one in which certain key variables (the quantities of commodities that are produced and consumed, and the prices at which they are exchanged) are unchanging. A dynamic condition is then, by inevitable opposition, one in which they are changing; and dynamic theory is the analysis of the processes by which they change.

Keywords: economic theory; economic dynamics; economic statics; methods; models

Chapter.  4427 words. 

Subjects: Macroeconomics and Monetary Economics

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