Research methodology in economics

Abstract

Introduction. Some methodological provisions need to be modified according to the realities of existing practice and be verified according to the possibilities of their application in economic phenomena and processes study. Theoretical analysis of methodological principles, their comparison and generalization were used during investigation. The purpose of the paper is to study basic methodological prerequisites and principles in economic research. Results. Analyzing and summarizing the achievements of Nobel laureates, the methodological problems of limited rationality, information asymmetry and opportunistic behavior of economic agents are considered. Modern mainstream in economic research corresponds to binary paradigm of neoclassicism and neoinstitutionalism, which are based on two common elements of the “core”: methodological individualism and “economic man” conception (homo economicus). The focus of the enterprises on maximizing profitability, and households – on benefits, is an axiom of neoclassicism, which implies significant requirements for information quantity and quality. At the same time, rational choice is accompanied by situations of uncertainty and varying degrees of risk regarding such activities consequences. The advantages of the institutional direction as the closest to the real conditions of economic entities market activity are substantiated. A specific feature of neoinstitutional approach is modification of neoclassical paradigm due to preserving basic preconditions of its “core” and partial transformation of “protective shell” into more perfect, realistic principles. In economics, the most significant is methodological combination of “semi-strong” limited rationality with a “strong” form of opportunistic behavior. Conclusions. Thanks to introducing modified preconditions and methodological principles into neo-institutionalism, it became possible to improve the analysis of economics and to apply interdisciplinary research in combination with the approaches of other branches of science.