Economic Analysis


Economic Analysis

The application of data to a theory of how people produce, trade, and use goods and services. One may use both qualitative and quantitative tools in economic analysis. For example, given a theory of what causes unemployment, an economic analyst may take the data in an attempt to find its true causes and compare them to the original theory. However, economic analysis may be colored by the analyst's preconceived notions, to the point in which some data is over- or underemphasized to prove one's point. On the other hand, economic analysis is vital to find the truth (or its closest approximations) about what makes an economy work.