Do Only Economists Rely on Statistical Significance?

9 Pages Posted: 3 Aug 2008

See all articles by Gordon Douglas Menzies

Gordon Douglas Menzies

University of Technology Sydney (UTS) - School of Finance and Economics

Daniel John Zizzo

University of Queensland - School of Economics

Date Written: August 2008

Abstract

Economists, like other scientists, routinely rely on classical statistical inference to form expectations on whether a claim holds in academic research, with significance levels such as 0.05 being assigned special meaning. We present experimental evidence suggesting that most people are also belief conservative and that, if the degree of belief conservatism is restricted to a single value, the resulting hypothesis testing occurs using a 0.05 significance level for those subjects who are not best described by rational expectations.

Keywords: statistical significance, expectations, belief conservatism, experiment

JEL Classification: B41, C91, D84

Suggested Citation

Menzies, Gordon Douglas and Zizzo, Daniel John, Do Only Economists Rely on Statistical Significance? (August 2008). Available at SSRN: https://ssrn.com/abstract=1194690 or http://dx.doi.org/10.2139/ssrn.1194690

Gordon Douglas Menzies

University of Technology Sydney (UTS) - School of Finance and Economics ( email )

Haymarket
Sydney, NSW 2007
Australia

Daniel John Zizzo (Contact Author)

University of Queensland - School of Economics ( email )

St Lucia
Brisbane, Queensland 4072
Australia

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