Social and Behavioral Sciences Commons^™

The Significance Of Statistical Significance: Two Authors Restate An Incontrovertible Caution. Why A Book?, Richard O. Lempert

Law & Economics Working Papers Archive: 2003-2009

“The Significance of Statistical Significance” reviews THE CULT OF STATISTICAL SIGNIFICANCE How the Standard Error Costs Us Jobs, Justice and Lives by Stephen T. Ziliak and Dierdre N. McCloskey. The book’s core message is that statistical significance should not be equated with substantive significance and that empirical researchers should convey more information about the magnitude of relationships and effects than many now do. This review summarizes, approves of and elaborates on Ziliak and McCloskey’s message with special attention to concerns of the legal academy. It clarifies appropriate uses of significance tests within the research framework of controlling for plausible rival …

What Explains Insider Trading Restrictions? International Evidence On The Political Economy Of Insider Trading Regulation, Laura N. Beny

Law & Economics Working Papers Archive: 2003-2009

This article investigates the determinants of insider trading regulation across countries. The article presents a political economy analysis of such regulation that takes into account both private (distributional) and public (economic efficiency) considerations. The model cannot be tested directly because the relevant private preferences and social costs are unobservable. However, existing theories of capital market development suggest that various observable social factors can explain the diversity of insider trading policies across countries. In turn, these social factors should reveal the underlying preferences and social costs motivating such regulation.

The main finding, based on data from a cross section of countries …