How do an economist as a scientist and an economist as a policy advisor help to create understanding of economics?
As a scientists, we conduct experiments and do research following the scientific method. (e.g., we observe a phenomena, form a hypothesis, gather data, test hypothesis, and then accept, modify, or reject the hypothesis).
As a policy advisor we teach/describe/explain how economies or economic forces work and what one can expect.
An economist as a scientist and an economist as a policy advisor both contribute to creating understanding of economics in different ways.
As a scientist, an economist conducts experiments, performs research, and follows the scientific method. This involves observing economic phenomena, formulating hypotheses based on these observations, gathering data, testing the hypotheses, and finally accepting, modifying, or rejecting the hypotheses. By using rigorous methods and analyzing data, economists as scientists contribute to the accumulation of knowledge and understanding of economic principles and behavior.
For example, economists as scientists may conduct experiments to study consumer behavior, test economic theories, or explore the impact of different policies on various economic indicators. Through this process, economists can uncover new insights, discover cause-and-effect relationships, and generate empirical evidence that helps to advance our understanding of how economies function.
On the other hand, economists as policy advisors have a different role. They utilize their expertise to teach, describe, and explain how economies or economic forces work, as well as what outcomes can be expected under different scenarios. They play a crucial role in providing evidence-based recommendations to policymakers, organizations, or individuals on specific economic issues.
Policy advisors use their knowledge of economic theories, models, and data to guide decision-making. They analyze the potential consequences of policy choices, assess the costs and benefits, and offer advice on how to achieve desired outcomes. By providing insights and recommendations, economists as policy advisors help shape policies that can foster economic growth, stability, and social welfare.
It is important to note that economists in both roles complement each other. The scientific research conducted by economists provides the foundation for evidence-based policy advice. The understanding gained from scientific inquiry informs and guides the work of economists as policy advisors, enabling them to offer recommendations that are grounded in empirical evidence and economic theory.
Overall, economists as scientists and policy advisors contribute to creating understanding of economics by generating knowledge through rigorous research and experimentation, and by providing guidance and expertise to inform decision-making and policy formulation.