Dynamic Analysis of Economic Time Series

Abstract

Controversy is liable to be evoked on the matter to what extent economics is of use for enhancement of people’s economic welfare. Economics not only should possess the double sides as normative science and positive science but also should make judgment from normative viewpoint on the actual economy, playing a role of providing political suggestions. Meanwhile the empirical evidence of economic activities based on the actual data is laid much stress on as positive science. In consideration of the fact that the economic theory is forced to make development with confrontation to the economic phenomena most characteristic of a period, a high possibility is also pointed out that necessity of the traditional theory being replaced with a new one. That is the reason why the empirical analysis has important role and the economics is called empirical science.