Economic theories function as analytic engines rather than exact copies of reality.

Evidence

In this sense, I have argued that perspectives on economic change, such as postindustrialism and financialization (others could readily be added to the list),have to be justified notin terms of some absolute truth they reveal about the world but in terms of their usefulness with respect to specific theoretical problems.Different ways of‘seeing’ the salient shifts that constitute long-term change in the economy produce new questions for investigation, and can potentially help to resolve impasses in areas of ongoing research. — Greta R. Krippner, The Financialization of the American…, 129 (#corroborates, via linked claim)

Categorization

• XREF: connects to: Economic theory is commonly assumed to map perfectly onto a constant reality — Mark Blyth, Austerity: The History of a Dangerous…, 119; Untestable economic theories breed intellectual intolerance and absolutism. — Angus Burgin, The Great Persuasion: Reinventing Free…, 409; Observing economics used in markets does not prove it shapes them. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 88 (+12 more)

Related

• Frameworks for economic change should be judged by theoretical usefulness, not absolute truth. (similarity 0.92)
• Applying economic models requires tacit professional judgment, not fixed rules. (similarity 0.89)
• Economic models serve as engines of analysis, not photographic records of reality (similarity 0.84)
• Finance theory altered its own empirical object of study (similarity 0.82)
• Friedman held that important theories must rest on descriptively false assumptions (similarity 0.82)
• Economic theory is commonly assumed to map perfectly onto a constant reality (similarity 0.82)
• Economists’ modeling may bend economic reality toward theoretical assumptions (similarity 0.80)
• Economic theories are endogenous and actively shape the world they describe. (similarity 0.80)
• Scholars should verify economic shifts empirically before explaining them (similarity 0.80)
• Untestable economic theories breed intellectual intolerance and absolutism. (similarity 0.80)
• Economics ought to be a constructive will, not a descriptive science. (similarity 0.79)
• Economics is effectively performative only when using it changes market outcomes. (similarity 0.79)
• Analytical paradigms should be judged by relative utility, not completeness or permanence. (similarity 0.79)
• Financial economics actively alters markets rather than merely describing them (similarity 0.79)
• Economics is generically performative when real-world actors actually use it. (similarity 0.79)

Broader Connections

• Frameworks for economic change should be judged by theoretical usefulness, not absolute truth. #corroborates (0.90) — Greta R. Krippner, The Financialization of the American…, 129