An easy way to apply economic theory to actual analysis – a technical means for applied economists Online publication date: Mon, 23-Mar-2009
by Yasumi Matsumoto
International Journal of Economics and Business Research (IJEBR), Vol. 1, No. 2, 2009
Abstract: In the application of economic theory to actual analysis, we are often bewildered how to use theory because the framework normally supposes the existence of all cases, which is not actually realised. Here, I introduce an easy way to significantly reduce cases to examine while maintaining the theoretical conclusion. When all cases are deployed, there are three approaches to examine the relationship among chosen elements: vertical, horizontal and random, for which set expansion and contraction properties, k-set feasibility or basic binariness, and revealed preference are generally used, respectively. We concentrate on first two approaches and significantly weaken the approaches to cascaded choice structure and specific k-set feasibility, respectively. Finally, we show how our approach reduces the number of cases to examine in the framework of collective choice theory. The reader will see how effective and easy to handle this approach is in the application of theory.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook