Deductive approach

1
Deductive approach

• Definition
• The process of moving from a general theory to
  specific hypotheses and observations of empirical
  phenomena

2
Inductive approach

• Definition
• The process of moving from specific observations
  to more general claims
• Start with specific case to generate hypothesis
• Example
• Explain economic development in one village in
  Shaanxi Province, China, in 2011

3
Hypothesis

• Definition
• Specific statement that can tested against
  (additional) evidence.
• The statement tells a story about the
  relationship between variables
• Example
• Roads and household rights to land ? causes
  more income for households
• Road land higher income

4
Variable

• Definition
• Variable
• something that can hold different scores it
  can vary
• Example economic development
• Different scores
• Higher (GDP per capita of US 5,000)
• Lower (GDP per capital of US 1,000)

5
Theory

• Definition
• A theory is a general explanation covering a full
  set of empirical phenomena.
• It is supported by extensive evidence (not just
  one example)
• It is typically based on variables that represent
  more abstract, general concepts
• Example
• The greater the state investment in
  infrastructure and the more widespread private
  property rights, the greater the economic
  development.

6
Positive v. normative theory

• Definition
• Positive based on the empirical evidence
• Normative based on what is socially desirable