Experimental Practices in Economics: Performativity and the Creation of Phenomena

This contribution provides a brief overview and discussion of the role of experiments in economics. It is argued that economic experiments have convinced economists and the public of the existence of phenomena that have been outside the scope of economics. The success of these experiments is partly due to the performative nature of experiments. To develop this argument, examples of experiments are provided, and two different sets of criticisms of experiments are discussed. The paper concludes with a discussion of which questions economists should address and how experiments can be used to study policy-relevant questions. ZUSAMMENFASSUNG - (Experimentelle Praktiken in der Ökonomie: Performativität und die Erzeugung neuer Phänomene) Der Beitrag beschäftigt sich mit der Rolle von Experimenten in der Ökonomie. Es wird argumentiert, dass Experimente dazu in der Lage sind, sowohl Ökonomen als auch eine breitere Öffentlichkeit davon zu überzeugen, dass bestimmte Phänomene existieren, die vorher nicht als relevant für die Ökonomie angesehen oder gar nicht wahrgenommen wurden. Diese Wirkung von Experimenten beruht zu einem wichtigen Teil auf ihrer Performativität. Um dieses Argument zu entwickeln, werden Beispiele für Experimente gegeben, verschiedene Kritikpunkte an Experimenten diskutiert sowie die Frage aufgeworfen, was die Grenzen der Ökonomie sind und wie Experimente zur Beantwortung wirtschaftspolitischer Fragen eingesetzt werden können.

German Industry - a Tower of Strength?

By the summer of 2011, Germany industry was back at levels last achieved before the economic crisis, thanks to continuous growth in production since early 2009. The recovery was driven by strong domestic and foreign demand for German capital and intermediate goods. However, the Ifo Business Climate Index, which has contracted since July 2011, and fewer orders suggest that industrial production will decline by the end of 2011. The duration and intensity of the slowdown will depend not least on how quickly policy-makers take convincing measures to resolve the debt crisis in the eurozone and thus allay widespread uncertainty among investors and consumers.Forecasts, business cycles, industrial production

Agenda for a New Financial Market Architecture

Since the summer of 2007, participants in financial markets have been confronted by a crisis of their own making. In order to prevent the recurrence of a similar crisis in the future, the G-20 nations, at their finance summit in Washington on 15 November 2008, resolved to "ensure that all financial markets, products and participants are regulated or subject to oversight, as appropriate to their circumstances." However, the elimination of loopholes as a matter of principle does not in itself provide a roadmap for the reconfiguration of financial markets. DIW Berlin is promoting an agenda of nine principles for regulatory reform. Item 1 through 3 focus on the prevention of coordination failures at the micro and the macro level as well as establishing appropriate incentives front and center; item 4 through 6 sketch out opportunities and limits for the future role of government; item 7 and 8 focus on oversight. Finally, item 9 calls for a stronger emphasis on equity financing and makes an appeal for the insight that financing constraints based upon credit worthiness ultimately serve to protect the financial system.Financial crisis, Regulation, Financial architecture