Statistical Significance, Path Dependency, and the Culture of Journal Publication

Abstract

A brief introduction to the misuse and abuse of tests of statistical significance is presented. This is followed by an analysis of why such an inappropriate socially sub-optimal and inefficient practice can persist over time in the face of a multiplicity of competing peer-reviewed journals. It is argued that this practice is path dependent and represents a market failure often resulting in misleading research findings and misguided public policy. This can only be corrected by changes to institutional parameters related to publication.

Keywords: Statistical Significance, Inefficient practice, Journals, Competition, Market failure, Policy, Parameters

JEL Classification: B40, C10, D70, L00