Answer to Question #206741 in Macroeconomics for Netesh

Question

Applied Economic Research either uses a Naturalistic (positivist) or Constructivist view of things.

With examples, discuss key differences and similarities between the two approaches

Answer 1

The positivist approach states that knowledge is generated through a scientific method; knowledge comes from things experienced through senses or provided by logic. For example, children carry out experiments to gain understanding. The constructivist approach argues that the scientist constructs knowledge. For example, teachers teaching children to equip them with appropriate knowledge.

Both approaches can be used in research methods whereby qualitative and quantitative knowledge is collected to get a certain meaning. For example, when assessing a person's wealth, one can count the number of cars that person has or look at the vehicle the person drives.