Theory and Practice in the Economic Science: the Problem of Interaction

Abstract

The article deals with the concepts of “theory” and “practice” and their application to the economic theory. When considering this topic, the author proceeds from the common in epistemology thesis postulating the principal opposition between the fundamental theory and the practice. These notions have different meanings and functional purposes. The principal difference between the theory and the practice leads to the question of their relationship. The history of economic thought knows different options for addressing the relationship between the theory and the economic policy, theoretical and empirical knowledge, between positive and normative in the science.
The author has found a case of successful solution of this problem. A model of three parts of economic science introduced by M. I. Tugan-Baranovsky serves as an example. It shows the mechanism of interaction between theoretical and practical spheres in the economic science.

Keywords:

theory, practice, economic policy, fundamental theory, applied knowledge