Meaning:

The study of economics on the basis of standstill condition is called static economic analysis or static economics. The changing condition of study is termed as dynamic economic analysis or dynamic economics. The concept of static and dynamic economics were first used by August Comte, a French sociologist for the first time.. Professor J.S. Mill used this concept in economics. The uses and limitations of static economics are a very important aspect in study of economics.

An economist defines static economics as a method of dealing with economic phenomenon that tries to established relationship between elements of economic system, prices and quantities of commodities all of which refers to the same point of time. Keynes States static economy deals with relation and processes on the assumption of uniformity and persistence of either the absolute or relative economic quantities involved.

 Thus static analysis is concerned with a state of rest. it implies causing to stand however economic static does not imply absence of movement rather it denotes a state in which there is a continuous regular certain and constant moment without change.

Uses of static economics:

• Act as a leader: Economics static possesses and introduced teaching value. It makes economic problem easy to study. It also explain the equilibrium position of two variables.
• For investigation: Static economic is useful for investigation. It study the individual firms, industries and consume for the understanding of phenomena they made it applicable to the real world by given a dynamic flavoring.
• The study of comparative static: Static economics in comparing one position of equilibrium with that of another.
• Solve complex problems: In economic static we study how an individual distribute his limited money income among various commodities to get maximum satisfaction, how a producer gets maximum that is profit by combining given production resources in optional manner and how is national income distributed significance of static economy in solving this complex problem.
• In economic principles: The central code of doctrine and principal relating to Robin’s definition of economics essentially belongs to economic static the case of free trade the doctrine of trade value and capital are all exercises in static analysis.

Limitation of static economics:

Unrealistic : Economic static is away from reality. Economic conditions are rarely static in reality. Markets, preferences, and technologies constantly change, making static analysis often unrealistic.

Absence of study of Dynamics: Static economics cannot study economic growth, business cycles, or the impact of policy changes over time. It unable to study the effects of investment, technological progress, and changes in consumer behavior.

Policy Implications: The Policies derived from static analysis may be ineffective or even harmful if they do not account for dynamic factors such as time element, expectations, and adaptive behaviors of economic agents.

Lack of Equilibrium Focus: Static economics study often neglect to focus equilibrium conditions, and ignore how economies actually reach equilibrium. This can lead to misunderstandings about the processes driving economic stability or instability.

Simplification of Complex Systems: Static study may oversimplify complex economic interactions, excluding important variables and their operations that play crucial roles in dynamic systems. It also excludes the influence of external forces and if their related to close economy.

Disregards time element: Economics statics disregards the influence of time, it is time less economy where as changes or continuously taking place in this world. It provides only a limited treatment for the study of economic problems. Also ignores time element which does not explain the path of equilibrium

also read: explain the uses and limitations of micro economics.