References

Kennedy, Gavin. "Adam Smith and the invisible hand: From metaphor to myth."Econ Journal Watch 6.2 (2009): 239-263.

Adam Smith did not credit the invisible hand metaphor with the importance that authors,from the mid-20th century onwards, give to it. In this paper I discuss what Adam

Smith most probably meant by his use of the ‘invisible hand’ metaphor, which is quite different from what has become its modern meaning.Emma Rothschild gave a detailed exposition of the invisible hand and what Smith meant by it – a ‘mildly ironic joke’ in her considered view

Ashraf, Nava, Colin F. Camerer, and George Loewenstein. "Adam Smith, behavioral economist." The Journal of Economic Perspectives 19.3 (2005): 131-145.

This paper argues that Adam Smith has a sophisticated theory of human behavior, matching current discoveries of behavioral economists, and very different from the idea that human beings are just selfish.

Blaug, Mark. "The fundamental theorems of modern welfare economics, historically contemplated." History of Political Economy 39.2 (2007): 185.

Discusses history of the fundamental theorems and shows that they are not really due to Adam Smith as many say. Furthermore, the theorems do not accomplish what it is claimed that they do. The attribution to Adam Smith is to lend intellectual prestige to them and to add to authority, so as it make it easier to fool a gullible audience of teenage students.

Foley, Duncan K. "What’s wrong with the fundamental existence and welfare theorems?." Journal of Economic Behavior & Organization 75.2 (2010): 115-131.

This paper argues that one cannot reach GE prices without following a path. Along the path trades will take place out of equilibrium. This invalidates the fundamental theorems.

Lombardini-Riipinen, Chiara, and Minna Autio. "Coverage of behavioral and experimental economics in undergraduate microeconomics textbooks."Available at SSRN 1088076 (2007).

This is used to document that most economics textbooks do not cover behavioral economics, which provides STRONG EVIDENCE AGAINST the selfishness hypothesis assumed in fundamental theorems.

Stiglitz: Comment in the Guardian -- There is no Invisible Hand. States that there is strong ideological bias which leads to continued teaching of this theory, even though there is no evidence in its favor.

Stiglitz, Joseph E. The invisible hand and modern welfare economics. No. w3641. National Bureau of Economic Research, 1991.

This paper reviews and puts into perspective recent work reassessing the first and second Fundamental Theorems of Welfare Economics. It assesses the implications of the Greenwald-Stiglitz fheorem establishing the (constrained) Pareto inefficiency of market economies with imperfect information and incomplete markets as well as recent work on endogenous technological change. The information theoretic limitations to the Second Fundamental Theorem are also discussed, including the inability to separate out issues of equity and efficiency. The final sections of the paper consider the consequences of these problems for economic organization, economic policy, and the role of ideology in the belief in the Invisible Hand.

One relevant reference is: The Free Market Experiment in Latin America:

Guided by an invisible hand - Stiglitz - newspaper article showing non existence of invisible hand