A Statistical Explanation of the Dunning-Kruger Effect
Tinbergen Institute Discussion Paper 2021-092/III
17 Pages Posted: 2 Nov 2021
Date Written: October 04, 2021
An explanation of the Dunning-Kruger effect is provided which does not require any psychological explanation, because it is derived as a statistical artefact. This is achieved by specifying a simple statistical model which explicitly takes the (random) boundary constraints into account. This model fits the data perfectly.
Keywords: Dunning-Kruger Effect, Boundary Conditions, Tobit Model
JEL Classification: A23, C24, C91, D84, D91, I21
Suggested Citation: Suggested Citation