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The Significance Of Economic Significance, Dakota M. Sneed Mr.

Oglethorpe Journal of Undergraduate Research

According to research performed by Deirdre McCloskey two important econometric terms, economic significance and statistical significance, have begun to become confused through equivocation. McCloskey calls for the distinction of the two types of significance but never gives a definition for what economic significance is. I show that statistical significance is necessary but not sufficient for economic significance by virtue of the fact that statistical significance does not say anything about the world or the natures of relationships. Furthermore, I found that the currently existing definitions of economic significance was too inconsistent for meaningful discussion. To remedy this problem, I create …