APPLIED ECONOMICS BASIS, Lecture notes of Applied Economics

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WHAT IS APPLIED ECONOMICS?

APPLIED ECONOMICS APPLIES THE CONCLUSIONS DRAWN FROM ECONOMIC

THEORIES AND EMPIRICAL STUDIES TO REAL-WORLD SITUATIONS WITH THE

DESIRED AIM OF INFORMING ECONOMIC DECISIONS AND PREDICTING POSSIBLE

OUTCOMES. THE PURPOSE OF APPLIED ECONOMICS IS TO IMPROVE THE

QUALITY OF PRACTICE IN BUSINESS, PUBLIC POLICY, AND DAILY LIFE BY

THINKING RIGOROUSLY ABOUT COSTS AND BENEFITS, INCENTIVES, AND

HUMAN BEHAVIOR. APPLIED ECONOMICS CAN INVOLVE THE USE OF CASE

STUDIES AND ECONOMETRICS, WHICH IS THE APPLICATION OF REAL-WORLD

DATA TO STATISTICAL MODELS AND COMPARING THE RESULTS AGAINST THE

THEORIES BEING TESTED.