ABSTRACT
Given the nature of economic affairs and the consequent method, empirical data must be recollected and measured. This chapter will discern the legitimacy of measuring social phenomena, introducing the nature of different scales and the role of judgement in measuring. It will also highlight the relevance of striking a reasonable balance between theory and empirical observations. While data without theory is useless, theory without data leads to an imaginary construct detached from reality, especially in such a contingent, free and culture-dependent matter as the economy. The difficulties stemming from this contingency are partially overcome with probabilistic generalizations based on natural and social regularities and trends. The chapter also deals with index building – which constitutes one statistical method – showing the theoretical and value commitments of indexes.
