Economics has a set of analytical methods characterized by quantitative analysis. It mainly includes: empirical analysis, marginal analysis, equilibrium analysis, static analysis, comparative static analysis, dynamic analysis, long-term and short-term analysis, individual and overall analysis, etc.

First, the empirical analysis method:

The empirical analysis method in economics comes from the philosophical positivism method. Empirical analysis is a statement verified by facts, which can be simplified to a form that can be proved by empirical data. When studying economic problems with empirical analysis, it is necessary to put forward theories to explain the facts and make predictions on this basis. This is the process of the formation of economic theory.

Second, the marginal analysis method:

It is a quantitative analysis method of economic behavior and economic variables by using marginal concept. The so-called margin means extra or increase, that is, the next unit or the last unit added. In economic analysis, simply speaking, margin refers to every increase or decrease of the original economic aggregate. Strictly speaking, margin refers to the rate of change of the dependent variable when the independent variable changes slightly.

Third, the equilibrium analysis method:

Balance was originally a physical concept. After the introduction of economics, equilibrium means that various opposing or interrelated forces in the economic system are in a state of relative balance but do not change. The analysis of the formation and changing conditions of economic equilibrium is called equilibrium analysis method. Divided into local equilibrium analysis and general equilibrium analysis.

Local equilibrium analysis method is a method to analyze the formation and change of equilibrium in the interaction of various factors contained in a certain part of economic system without considering the influence of factors outside this part.

General equilibrium analysis method is relative to local equilibrium analysis method. It is a method to analyze the supply and demand of various markets and commodities in the whole economic system and their changes at the same time.

Fourth, static analysis, comparative static analysis and dynamic analysis

It is a method to completely abstract the time factors and process of economic change and analyze the formation and conditions of the equilibrium state of economic phenomena under the assumption that various conditions are static.

Comparative static analysis method

It is an analytical method that compares two or more equilibrium positions of a single economic phenomenon before and after the change, regardless of the transition period and the change process itself.

Dynamic analysis method

Considering the time factor, the change of economic phenomenon is regarded as a continuous process, and the actual change process from the original equilibrium to the new equilibrium is analyzed.