Methods of sociology (Scientific methods and limitations, sociology as a science)

Sociology has been trying  to develop its own method of study. Some key methods of  sociology  are listed below

1.The comparative method

2.The historical method

3.The statistical method

4.The case study method

5.The functional method (Functionalism)

6.  The scientific method

7.  Limitation of scientific method in sociology

8.  The scientific view point

9.  Sociology is a science

10.  The sociology point of view

 The Scientific Method

•Any kind of science has its own method of study. So, being a  social science sociology has also specific scientific  methods for study

•The scientific methods consists of certain steps which are described below

1.Formulation of the problem

•A problem is the gap of knowledge, something not understood.

•Problem may be simple or complex

•Problem should define properly

•The causal  observation and  an idea regarding the  existing amount of knowledge  on the particular issue may help to define  the problem properly.

• 2.Formulation of Hypothesis

•Primary idea which guide us  in our study is the hypothesis

•It is the tentative explanation of phenomenon

•It is provisional ( temporary) supposition (belief)  which is not at proved  but is anticipated  to be correct.

•Example : There will be significant differences across gender, ethnicity and year of

experiences  of leaders and their leadership in society.

• 3. Observation and collection of data

•The formulated hypothesis will have to be tested.

•For this it is necessary to  collect facts

•In social investigation  data will be collected by  interview schedule, questionnaire, field observation etc.

4.Analysis and synthesis

• After collecting the data they must be  processed and analyzed in order to  draw proper  inferences (conclusion )

•In this step we should conduct classification of data i.e arranging the data in different groups as per their nature.

5.Generalization

• After  the data have been collected, processed and analyzed we have to draw board inferences or conclusions or generalizations.

6.Formulation of theory and law

•When a scientist successes  in describing and explaining the relation between various facts he/she has formulated a theory.

•When those facts have been tested  and accepted   by the scientist as a true mater then the theory may be properly regarded  as a law.

6. Problem of objectivity

•There is the subjective nature of social phenomenon. The social researcher  or observer is also

a component of the society. so,  in the study there is the possibility of biasness .

In conclusion

•  There is limitation of the scientific method of study of sociology. In addition to scientific

method sociology should adopt other method like comparative, statistically, social survey etc.

Sociology as a science

According to W.F.Ogburn an American, sociologist sociology is a science, according to him

science  is to be judged  by three criteria

1.The reliability of  its body of knowledge

2.The organization of knowledge  and,

3.its method

•In order to judge  whether sociology is science or not, it is necessary to examine using above

three criteria

  Methods

•Scientific methods start with problem identification and  formulating hypothesis. We

adopt this method in sociology as well though experimentation of laboratory situation is dificult

in sociology.

In conclusion

• Science is the method for discovering the truth. There are many methods and techniques in

sociology. If these are properly applied , sociology acts as a genuine science.

   Methods of Sociology

Comparative Method

•In this method, different institutions are studied in various societies in the various points of

time.

• After the study, analysis and comparison is drawn to discover new facts or relations.

•Thus it is a method of comparing various societies or groups within the same society to show

why they are similar or different in certain respects.

Historical Method

•Historical method is that approach of study that draws our attention towards details of the past.

• The classical sociologists did not have modern transport and communication system to visit

various places and naturally they had to rely more on written records than our actual

observation of the social phenomena.

•Darwin’s theory of evolution and Karl Marx’s law of economic determinism are examples of

this method.

Statistical Method

•Statistical method refers to the method that is used to measure social phenomena

mathematically.

•Statistics include collection of numerical facts relating to any field of inquiry in a systematic

matter and their analysis and interpretation.

Case Study Method

•The case study is a form of qualitative analysis. It involves very careful and complete

observation of a person, situation or institution.

•The idea behind this method is that any case being studied is representative of many similar

cases and thus it makes generalization possible.

Functional Method

•Functional method is based on an assumption that the total social system of the society is made

up of parts, which are interrelated and interdependent.•It is believed that each part has the

specialized function and any one part of the social system can be understood only in its 

relationships with other parts as well as with the whole system.

PIECES Framework

A checklist for identifying problems with an existing information system.

• Performance
• Throughput
• Response Time
• Information (and Data)
• Outputs
• Lack of any information
• Lack of necessary information
• Lack of relevant information
• Too much information – information overload
• Information that is not in a useful format
• Information that is not accurate
• Information that is difficult to produce
• Information that is not timely to its subsequent use
• Inputs
• Data is not captured
• Data is not captured in time to be useful
• Data is not accurately captured – contains errors
• Data is difficult to capture
• Data us captured redundantly – same data is captured more than once
• Too much data is captured
• Illegal data is captured
• Stored Data
• Data is stored redundantly in multiple files and/or databases
• Stored data is not accurate
• Data is not secure from accident or vandalism
• Data is not well organized
• Data is not flexible – not easy to meet new information needs from stored data
• Data is not accessible
• Economics
• Costs
• Costs are unknown
• Costs are untraceable
• Costs are too high
• Profits
• New markets can be explored
• Current marketing can be improved
• Control (and Security)
• Too little security or control
• Input data is not adequately edited
• Crimes (e.g. fraud, embezzlement) are (or can be) committed against the data
• Ethics are breached on data or information – refers to data or information getting to unauthorized people
• Redundantly stored data is inconsistent in different files or databases
• Data privacy regulations or guidelines are being (or can be) violated
• Processing errors are occurring (either by people, machines, or software)
• Decision- making errors are occurring
• Too much control or security
• Bureaucratic red tape slows the system
• Controls inconvenience customers or employees
• Excessive controls cause processing delays
• Efficiency
• People, machines, or computers waste time
• Data is redundantly input or copied
• Data is redundantly processed
• Information is redundantly generated
• People, machines, or computers waste materials and suppliers
• Effort required for tasks is excessive
• Materials required for tasks is excessive
• Service
• The system produces inaccurate results
• The system produces inconsistent results
• The system produces unreliable results
• The system is not easy to learn
• The system is not easy to use
• The system is awkward to use
• The system is inflexible to new or exceptional situations
• The system is inflexible to change
• The system is incompatible with other systems
• The system is not coordinated with other systems

Investment

Investment

In general sense, investment is that part of capital which is spent on productive use. In other words, investment refers the expenditure on capital goods. The word investment is applied to the spending money on capital goods. Investment can be classified into three types:

1. Autonomous and induced investment
2. Planned, unplanned and actual investment
3. Gross investment and net investment

1. Autonomous and induced investment:

Autonomous investment is the regular of compulsory investment and it is not guided by profit motive. It is income inelastic. In the words of Peterson, “The autonomous investment is generally associated with such factors as the introduction of new technology or product, the development of new resource on the growth of population or labour force”.

When an increase in investment is due to the increase is the current level of income. It is done with the profit motive. It varies positively with the level of income.

2. Planned, unplanned and actual investment:

If investment is made intentionally to achieve pre-defined goal, then it is planned investment. If investment if made due to sudden changes or unexpected changes in economic and other factor then it is called unplanned investment.

Actual investment is the sum of planned and unplanned investment.

3. Gross and net investment:

Gross investment is the sum total of net investment and depreciation. It refers to the total expenditure on capital goods in a period of time.

Net investment is difference of depreciation from gross investment. It occurs due to increase in capital stock.

Investment function:

Investment function refers to inducement to invest or investment demand. Classical economist considered investment demand simply as a decreasing function of interest rate. Hence,

, where I = induced investment, r = rate of interest

Keynes state that the volume of investment undertaken by private entrepreneurs in the economy depends on two factors i.e. marginal efficiency of capital and rate if interest. Hence,

Marginal efficiency of capital (MEC)

The concept of MEC was introduced by Iriving Fisher. This concept was fully developed or re-defined by J. M. Keynes. It is one of the important contributions made by Keynes. The MEC refers to the expected profitability of capital assets. It is related to real investment not financial investment. It may be defined as the higher rate of return over cost expected from the marginal or additional unit of capital assets. Hence, MEC = ………………….. (i)

Where, Q = expected yields of capital assets

            r = rate of interest

            C = supply price of the assets

The value of r is equal to MEC. It can be obtained by re-arranging the term in equation (i)

= 1.5 – 1

r = 0.5

This shows that MEC = 5%.

MEC is measured with the help of two elements:

1. Prospective Yield:

It means aggregate net return from asset during its life time. Net return refers to the net yearly proceeds obtained from the sales of output produced by the capital assets.

2. Supply Price:

The cost of capital goods is called the supply price. The investor while purchasing a new plant or establishing a new factory he does not only see the expected return from it but also supply price of it. Hence, we can obtain the MEC in the following way.

, where Qn = expected rate of return, r = rate of discount / MEC

Sp = supply price

Investment demand curve:

The MEC falls as investment increases. There are two reasons for this. They are:

1. The installation of large number of similar machine leads to a reduction in their perspective yields just as consumption of more units leads to a decrease in marginal utilities.
2. The price of such machine will go up as their demand increases. This will add to the cost. Thus cost will go up on one hand and the market price of their product goes down as production increases. Hence MEC goes down as investment increases. This is because with more investment the productive capacity of the economy will increase and this will decrease expected rate of profit.

This can be shown with the help of following diagram:

Investment (in million)	MEC
$10,000	12%
$12,000	10%
$14,000	8%
$16,000	6%
$18,000	4%
$20,000	2%

Determinants of MEC (induced invest)

1. Level of income
2. Liquid assets
3. Taxation
4. Business optimism and pessimism
5. Economic policies
6. Political climate

1. Level of income:

If the level of income raises in the economy through rise in wage rates and other factor prices, the demand for goods will rise this will give rise to MEC and on the contrary, the inducement to invest or MEC will fall with the lowering of income level.

2. Liquid assets:

The amount of liquid assts with the investor also influences the inducements to investment. If they posses large liquid assets, the inducement to invest is high and vice-versa.

3. Taxation:

MEC is also affected by the rates if taxation. Heavy doses of direct and indirect tax adversely affect the MEC. On the other hand low rates of taxation tend to raise MEC and encourage investment.

4. Business optimism and pessimism:

Business psychology plays on important past in determining the MEC. If the business person is optimistic then the majority of entrepreneur would estimate a high MEC and pessimism a low MEC is estimated.

5. Government policy:

If the government levis heavy progressive tax the MEC is low and vice-versa. If the government sector regarding private sector is liberal (in terms of credit facilities and other necessary legal environment, the private sector participation will be enhanced and MEC will increase.

6. Political climate:

If there is political instability in the country, the inducement to investment is adversely affected.

Paradox of Thrift

The concept of paradox of thrift is a paradoxical because it contradicts with popular saying “A peni-saved is peni-earned”. This may be true for individual but not for the society. According to classical economist saving is a private virtue because every individual should save something for his difficult days. Saving is positive function of rate of interest and investment is negative function of rate of interest. Rate of interest is determined by the interaction between saving and investment. Therefore, according to classical economist saving is both private as well as social virtue.

                       

But Keynes rejected the idea of classical economist and he claimed that ‘saving is a vice not a virtue’. Saving is increasing function of current income. In other words, saving varies positively with current income. Since one man’s expenditure is other’s income. Increased saving means less consumption and hence less of effective demand which leads the reduction in income, output and employment in the economy. Hence, according to Keynes, “saving is a big social vice not a virtue”.

The paradox of thrift can be shown with the help of following diagram:

In the above figure E is the initial equilibrium where investment (II₁) intersects saving curve (SS₁). This equilibrium shows that income equilibrium is OY₁. At this level of income equilibrium saving and investment is Y₁E₁, when saving is the society increases. The saving curve shifts upward from S₁S₁ to S₂S_2. It leads to decrease in consumption, investment and income. As a result new equilibrium is formed i.e. E, which S₂S₂ intersects with investment curve II_1. This equilibrium level of income and equilibrium saving and investment are OY₂. It implies that saving in current period leads to decrease in both saving and income in future.

Theory of Multiplier

The concept of multiplier is one of the important components of Keynesian theory of employment. This theory was propounded by a popular economist F.A. Khan in 1931. Later on J.M Keynes developed and redefined this theory. Hence, where K = multiplier.

= Change in income

= Change in investment

Multiplier is the ratio between change in income with change in investment at particular period of time. In other words, it tells us how many times income increases as a result of increase in investment.

Relationship between multiplier and MPC (Marginal Propensity to Consume)

Let a two sector economy, economy is in equilibrium as follows:                                                                                                               Y = C + I ------------------- (i)

When investment increases them,

Y + = C +   + I +    --------------------- (ii)

Subtract the eqⁿ (i) from (ii)

= + ------------------------ (iii)

Or, =

Or, - =

Or, =

Or,

Substituting the value,

Or, K = ------------------------- (iv)

K =                                                      

This equation shows that the multiplier and marginal propensity to consume have direct relationship. When MPC increases, multiplier also increases and vice versa. This positive relationship can be shown by the help of following table.

MPC	Multiplier K =
0	1
0.25	1.33
0.50	2
0.75	4
-1

Assumption of multiplier effect

1. The original propensity to consume remains constant during the period of multiplier process.
2. There is closed economy.
3. There are no changes in prices.
4. Consumption is function of current income
5. There are no time lags in multiplier process.
6. Consumer goods are available in response to effective demand for them.

Forward working multiplier can be shown with the help of following figure:

Figure:

In the given figure, x-axis represent income and y-axis represent saving / investment. Initial equilibrium is E₁, at point E₁ the equilibrium income is OY. Now there is an increase in the investment () which leads to an increase in the aggregate expenditure. Thus, this cause income to increase ().

Reverse working multiplier

Figure:

In the given figure x-axis and y-axis represents income and saving / investment respectively. Initial equilibrium is E1. At this point income level is OY1. Now there is decrease in investment () which leads to decrease in the aggregate expenditure. Thus, this cause income also decrease by ().

Leakage of multiplier

1. Saving
2. Undistributed profit
3. Taxation
4. Inflation
5. Hoarding of cash balance

1. Saving:

It is the most important cause for the leakage of multiplier process. Since the marginal propensity to consume is less than one, the whole increment in income is not spent on consumption. A part of it is saved which prefer out of the income stream and the increase in income in the next round decline. Thus, the higher the marginal propensity to save, the smaller the size of the income stream and vice versa.

2. Undistributed profit:

If profits acquiring to Joint Stock Company are not distributed to the shareholders in the form of dividend but are kept in the reserve fund, it is a leakage from the income stream. If companies tend to reduce the income and hence, further expenditure on consumption goods thereby weakening the multiplier process.

3. Taxation:

It is also important factor in weakening the multiplier process. Progressive taxes have the effect of lowering the disposable income of tax payers and reducing their consumption expenditure. Thus, increased taxation reduces the income stream and lowers the size of multiplier.

4. Inflation:

When there is a raise in the price of consumption goods, a good part of the increased money expenditure out of the increased income will be dissipated on higher prices instead of promoting consumption, income and employment.

5. Hoarding of cash balance:

This type of leakage will be greater if business prospectuses are bad and smaller. When business prospectus are good. Whenever new created money income is hoarded, it cannot reappear as income in the next round and the multiplier effect will be arrested.

Unemployment

Unemployment in reality is taken in sense of involuntary unemployment. Involuntary unemployment refers to a situation when people are willing to work at the prevailing wage rate. But they are unable to find the work.

Types of unemployment

1. Cyclical unemployment
2. Frictional unemployment
3. Structural unemployment
4. Open unemployment
5. Disguish unemployment
6. Educated unemployment

a.       Cyclical unemployment:

It is associated with the downsizing and depression phases of business cycle. During the downsizing and depression phase of business cycle income fall then aggregate demand also falls and output fall giving rise to widespread unemployment. It is caused by deficiency in aggregate demand.

b.      Fictional unemployment:

Frictional unemployment exists when there is lack of adjustment between demand and supply of labour force. People leave job for many reason and they take time to find new jobs because of lack of knowledge and mobility on part of the labour. This gives rise to temporary unemployment of those workers who are moving between jobs. Unemployment caused by movements of people from one job to another.

c.       Structural unemployment:

Unemployment in Nepal is basically structural in nature, which refers to a situation when a large number of persons do not get work because of limited job opportunities available. This is known as structural unemployment.

d.      Open unemployment:

Open unemployment refers to a situation when there are some workers who have absolutely no work to de. They are willing to work at the present wage rate but they are forced to remain unemployment in the absence of work.

e.       Disguish unemployment:

It refers to a situation when a person is apparently employment, but in fact is unemployed. It is not open for everyone to see. It remains canceled or hidden. This type of unemployment prevails mostly in villages.

f.       Educated unemployment:

It refers to the unemployment among the educated. Some of these people may be unemployed in the sense of open unemployment i.e. they are not doing any work whatever.

Keynesian theory of employment (Principle of effective demand)

 British economist J. M Keynes in 1930s developed macro economics as a field of economic analysis, different from micro-economics. Keynes propounded the theory of employment, which is also known as principle of effective demands. According to this theory unemployment arises due to the deficiency of effective demand and method to control unemployment is to raise effective demand. According to Keynes the level of employment in short run will depend on aggregate effective demand for goods and services in the country. Greater the aggregate demand greater will be the volume of employment and vice-versa. Total employment depends on total demand and unemployment is the result of a deficiency of total demand. Effective demand represents total money spends on consumption and investment.

 Assumptions:

1. There is the existence of closed economy.
2. There is operation of law of diminishing returns.
3. Perfect competition market exists in the society.
4. Less than full employment equilibrium is possible in short run time period.
5. Labour supply in the economy is positively related to money wages.

Aggregate Demand Price / Function (ADP)

When the entrepreneur provides employment to the labour, they produce goods and services. The entrepreneur receives certain fixed amount of money from the sale of that product. Hence, the aggregate demand price refers to the receipt which all the entrepreneurs taken together expect from of the sale of the output. In brief, ADP means the expected price or income when certain volume of employment is given. The expected receipts are different to different level of employment. A schedule of receipts expected from the sale of output from various amount of employment is called aggregate demand function.

Aggregate Supply Price (ASP)

The entrepreneur should bear certain production cost when he gives employment to a fixed number of labour. Hence, he should get at least a minimum amount from the sale of output while giving employment. Therefore, ASP refers to the amount of money that the entrepreneur taken together must receive from the sale of output as given level of employment. In brief, ASP is the production cost of total output at a given level of employment.

The aggregate supply price is different at different level of employment. A schedule of minimum amount of receipts required to induce various quantity of employment is called aggregate supply