ABSTRACT
Political economy, in having recourse to the deductive method, is usually described as essentially hypothetical in character. This description of the science needs to be carefully explained and guarded, as there is some danger of confusion of thought in regard to the implications contained in it. Ricardo's writings, and in particular his Principles of Political Economy and Taxation, are frequently quoted as affording typical and representative examples of the use of the deductive method in economics. The tone adopted by Ricardo suggests that there is a remoteness from the facts of actual life that is not really essential to the employment of the deductive method. There are certain modifications of the deductive method, which render it comparatively easy to deal effectively with problems of considerable intricacy. The principles by which the economist is guided in the choice of premises are generality and simplicity.
