The performativity thesis and the interactions between economic theories and social reality

Author(s)

Celso Pereira Neris Junior ^[1] ; José Ricardo Fucidji ^[2] ; Rafael Galvão de Almeida ^[3]

Affiliation

^[1] Universidade Estadual Paulista. Departamento de Economia - Brasil

^[2] Universidade Estadual de Campinas. Instituo de Economia - Brasil

^[3] Universidade Federal de Minas Gerais. Centro de Desenvolvimento e Planejamento Regional - Brasil

• Document type: Journal article
• Source: Nova econ.; v. 31, n. 2, p. 487-510, 2021-10-22.

Abstract

Abstract Originally proposed by philosopher of language John Austin, and later adapted by other social sciences, the performativity thesis has been known as a critique of the homo economicus of mainstream economics. The performativity of economics is the idea that economics gives birth to activities and markets in the economy (rather than merely describe or interpret them). This paper reviews arguments for and against performativity as a useful way of thinking about the economics-economy relationship. Following this survey, we put forward our interpretation, viz., an interactive approach to this subject. By doing so, we argue for its epistemological relevance for economic methodology, i.e., for understanding the relationship between theories and economic models and the events in the economy. Furthermore, we claim that because they are embedded in social reality, mainstream economic theories occupy a particularly resilient position. (AU)

• FAPESP's process: 18/07082-6 - Economic methodology and the approach of critical realism
• Grantee: José Ricardo Fucidji
• Support Opportunities: Regular Research Grants