Abstract
Much has been written about the methodology of economic science. Little has been written about the methodology of applied economics, and most applied economists think of applied economics as subject to a scientific methodology. But, as Classical economists recognized long ago, that cannot be correct as the methodology of science is designed to minimize the integration of values, while applied policy analysis requires the integration of values into the analysis, ideally in as transparent ways as possible. This article suggests that applied policy economics should consciously follow an engineering, not a scientific, methodology because engineering methodology allows for the conscious blending of philosophical methodology, used to arrive at consensus on values, with scientific methodology used to arrive at consensus on scientific facts and understanding.
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