Theoretical Definitions Economics NORMATIVE Vs. POSITIVE ANALYSIS Published by: https://assignmentessayhelp.com/ Filename: 1SAMPLE16C100-Theoretical-Definitions-Economics.pdf For more assistance visit: https://assignmentessayhelp.com/economics-assignment-help/ Uploaded: May 26, 2016 Enjoy Abstract While talking about normative analysis, we generally refer to the opinions based on value judgments, without considering the available facts and figures. Based on theoretical foundations, this analysis is carried out on a subjective mode. For example, if we look at the foundations of game theory, it becomes clear that subjective judgments come with probabilistic choices, and that is solely based on contextual arrangements. However, boundary conditions are majorly not considered in this case, as normative analysis is subjective in nature and therefore, considering a phenomenon as a boundary or not is totally subjective in nature. On the other hand, when we talk about positive analysis, we generally refer to the opinions based on available facts and figures. If the analysis is done based on a particular theoretical foundation, and if the analysis of the data on any particular context does not that theory, then in accordance with the positive analysis, the theory has to be disproved in that particular context. For example, if we consider the Environmental Kuznets Curve hypothesis in the context of a developed and a developing country, then we can see that the curve may hold in the context of a developed nation, but not for developing nation. Therefore, the hypothesis has to be disproved in the second context, based on the economic development and emission data available in that context.