The Science of Economic Growth

Science is an organized venture which systematically builds and implements knowledge in the form of predictions and testable explanations about the physical universe. The field of science deals with phenomena that are quantifiable in terms of measurable quantities such as space, time, mass, electricity, magnetism and gravity. Physics and chemistry have been around for centuries. But in recent times there has been a parallel surge in interest in other branches of sciences.


Science is based on the discipline of measurement. Measurement is the most important tool for science because it lets us know what exists. This discipline of science is called “normal science” because it deals with observed things as opposed to those things which are studied only theoretically. For example, when we talk of physical science we refer to physics, astronomy, chemistry and biology. On the other hand, the field of psychology deals with the individual and the physiological.

There is a parallel surge in interest in economics as well. In the modern economic terminology money is used to represent real goods or services whereas savings bank teller is used to represent the extraneous variables. Economists are constantly trying to understand how saving and investment affects the growth of the economy. The standard of living is one of the biggest influences on the level of economic activity.

Another area of science gaining prominence is genetics. Genomics has recently turned out to be an independent variable in human evolution, which was previously studied using the theory of contingency theory. contingency theory postulates that genetic differences are random due to chance events without any intelligent intervention. As an example, consider a pair of parents who both pass a common genetic disease which leaves the child with a severe disability as a result of that disease.

In the last few years a new school of economic theory called NAPLES (Neural Clustering Analysis, Principal Component Analysis, and Time Processes) has gained much popularity in economic research. This school of thought postulates that there are four independent variables that are strongly related to the behavior of the economy. One of these variables is labeled “Growth” and another is labeled “Income”. Two other factors are labeled ” Consumption” and ” Inventory”.

These four variables are used together in a neural network that is then used to predict the behavior of the economy. The main problem with this method is that it only works in cases where there is consistent data and it is very time consuming to collect this kind of information. It is used most often with macroeconomic theories where there is a very strong signal of an economic crisis. If you have an interest in this subject and want more information please visit my website for more information.

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