Do Only Economists Rely on Statistical Significance?
9 Pages Posted: 3 Aug 2008
Date Written: August 2008
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: Suggested Citation