The theoretical model is a body of logical arguments that follow from the assumptions. In economics, these arguments connect economic behavior to economic activity in a systematic fashion. Transitivity is the property that ensures that one statement passes to the next in such a way that each successive statement is subsequent to all preceding statements and is not causal of or to a preceding statement. The empirical model is the observed or actual linkages derived from testing the theoretical model. To determine the applicability of the theory, the social scientist performs any number of tests.
Empirical models verify the theoretical model with experiments or experience.
Laboratory tests are repetitive experiments, which can be conducted under controlled conditions. Laboratory testing occurs principally in the pure sciences. In repeating the experiment, the scientist can determine the validity of the theoretical conclusions. For example, combining two parts hydrogen to one part oxygen always produces water. Statistical tests are probabilistic estimates.