Regulatory use of CAPM could generate model-compliant returns but remains untested empirically

Evidence

If the use of the model in this way actually generated model-compliant rates of return (I know of no empirical study of the issue), it would be an instance of Barnesian performativity. — Donald MacKenzie, An Engine, Not a Camera, 1150

Categorization

• QUESTION: MacKenzie flags that no empirical study exists on whether regulatory CAPM use actually produces model-compliant returns — a genuine gap worth chasing in the literature.
• DEFINE: Clarifies Barnesian performativity as distinct in kind: the model’s regulatory use would bring about the very returns the model predicts.
• XREF: connects to: Credit-risk regulation imports market-finance models developed for traded securities. — Ève Chiapello, Financialisation of Valuation, 60; Financial capital both depends on and disciplines industrial production for returns — Clara E. Mattei, Escape from Capitalism, 419; Testing CAPM substituted realized returns for expected returns via rational-expectations assumptions. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 111 (+9 more)