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applied economics
Applied economics is the application of economic theory and econometrics in specific settings. As one of the two sets of fields of economics (the other set being the ''core''),〔http://www.aeaweb.org/students/Fields.php〕 it is typically characterized by the application of the ''core'', i.e. economic theory and econometrics, to address practical issues in a range of fields including demographic economics, labour economics, business economics, industrial organization, agricultural economics, development economics, education economics, health economics, monetary economics, public economics, and economic history. The process often involves a reduction in the level of abstraction of this core theory. There are a variety of approaches including not only empirical estimation using econometrics, input-output analysis or simulations but also case studies, historical analogy and so-called common sense or the "vernacular".〔Swann, G. M. P. (2006) ''Putting Econometrics in Its Place: A New Direction in Applied Economics'' (published by Edward Elgar).〕 This range of approaches is indicative of what Roger Backhouse and Jeff Biddle argue is the ambiguous nature of the concept of applied economics. It is a concept with multiple meanings.〔Backhouse, R. and Jeff Biddle (2000) ‘The concept of applied economics: a history of ambiguity and multiple meanings’, ''History of Applied Economics 32'' (annual supplement), 2000.〕 Among broad methodological distinctions, one source places it in neither positive nor normative economics but the ''art of economics'', glossed as "what most economists do".
==Origins of the term==
The origin and meanings of Applied Economics has a long history going back to the writing of Say and Mill. Say wrote about "applying" the “general principles of political economy” to "ascertain the rule of action of any combination of circumstances presented to us." The full title of Mill’s (1848) work is Principles of Political Economy with Some of Their Applications to Social Philosophy.〔
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