Economics is effectively performative only when using it changes market outcomes.

Evidence

What is less straightforward conceptually, and more complicated empirically, is to determine what effect, if any, the use of economics has on the economic process in question. The presence of such an effect is what is required for a stronger meaning of “performativity”: the subset of generic performativity that one might call “effective performativity.” For the use of a theory, a model, a concept, a procedure, a data set, or some other aspect of economics to count as effective performativity, the use must make a dference. Perhaps it makes possible an economic process that would otherwise be impossible, or perhaps a process involving use of the aspect of economics in question differs in some significant way (has different features, different outcomes, and so on) from what would take place if economics was not used. — Donald MacKenzie, An Engine, Not a Camera, 87

Categorization

• DEFINE: Establishes ‘effective performativity’ as distinct from generic performativity — the stronger, causal sense of the thesis.
• DEEPTHINKING: The counterfactual framing here — ‘differs from what would take place if economics was not used’ — is the rigorous causal core of the entire performativity program.
• XREF: connects to: Economics is generically performative when real-world actors actually use it. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 85; Not every authoritative formula can make itself true; only viable ones become performative. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 96; Observing economics used in markets does not prove it shapes them. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 88 (+1 more)

Broader Connections

• Economics is generically performative when real-world actors actually use it. #expands (0.95) — Donald MacKenzie, An Engine, Not a Camera, 85
• Not every authoritative formula can make itself true; only viable ones become performative. #qualifies (0.80) — Donald MacKenzie, An Engine, Not a Camera, 96
• Observing economics used in markets does not prove it shapes them. #qualifies (0.75) — Donald MacKenzie, An Engine, Not a Camera, 88