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Statistical Non-Significance in Empirical Economics

Author

Listed:
  • Alberto Abadie
Abstract
Significance tests are probably the most common form of inference in empirical economics, and significance is often interpreted as providing greater informational content than non-significance. In this article we show, however, that rejection of a point null often carries very little information, while failure to reject may be highly informative. This is particularly true in empirical contexts that are typical and even prevalent in economics, where data sets are large (and becoming larger) and where there are rarely reasons to put substantial prior probability on a point null. Our results challenge the usual practice of conferring point null rejections a higher level of scientific significance than non-rejections. In consequence, we advocate a visible reporting and discussion of non-significant results in empirical practice.

Suggested Citation

  • Alberto Abadie, 2018. "Statistical Non-Significance in Empirical Economics," NBER Working Papers 24403, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24403
    Note: DEV LS PE TWP
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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