Deduction Or Induction

Neoclassical Economics and Economic History,respectively originated from the wo branches of the British classical political economy,deductive school and the historical school.The deductive schoolinherited the orthodox economic research methods and Ricard's theroies,took deductive method as the core,using the labor theory of value and the theory of free competition to analysis economic facts.Historical school advocated the development of appropriate policies for economic theory and social reality,in their opinion,deductive approach is too abstract from reality,only by useing the historical and inductive method can they recognize the economic realities.There is no existence of universal theories,and they all have a limitation in times and spaces.There were other aspects of great difference,besides the economicmethod,such as significance of economic nature,the relation between theory and reality.From 1865 to 1926,a debate took place over half a century,it is known as the English Methodenstreit.With the debating,two schools gradually evoluted into twotwo new disci pline which are called Economic history and Neoclassical economics.The art icle is writen to make a comprehensive reserch about the English Methodenst reit,and find the indicate the problems,which is that the economic historian s should not abandon the traditions at beginning ofbirth.Paying more attention on practical problems with historical method.Neoclassical economics should not take too much emphasis on the methods and interpretation of scientific c hase to benign interaction with the inductive method.Therefore,the economi c history and neoclassical economics ought to take their strengths to comple ment to each other for positive development.Through the study of the debate,I found that although induction method now is not the mainstream in the e conomic studies,but this does not mean that inductive method in economics is unimportant,In fact,in the 19th in England,the inductive method has play ed a major role in solving practical problems,and there is a great value.De ductive method and the inductive method is not completely opposite,their co-existence is beneficial for the development of the discipline.Clarifying the causes of the debate,exploring the development process and the final result of the controversy,the author had a deeper understanding of economic historians and neoclassical economics,finding that both the inductive method anddeductive method are important to the study of economics.We hope that future economic study no longer limit to the use of methods,paying enough attention to the method of deductive and inductive methods Hoping deductive method and historical inductive method neoclassical had a good interaction.