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A Frequentist Alternative to Significance Testing, p-Values, and Confidence Intervals
Open AccessFeature PaperArticle

The Replication Crisis as Market Failure

School of Economics, The University of Queensland, St Lucia QLD 4072, Australia
Econometrics 2019, 7(4), 44; https://doi.org/10.3390/econometrics7040044
Received: 30 September 2019 / Revised: 13 November 2019 / Accepted: 18 November 2019 / Published: 24 November 2019
(This article belongs to the Special Issue Towards a New Paradigm for Statistical Evidence)
This paper begins with the observation that the constrained maximisation central to model estimation and hypothesis testing may be interpreted as a kind of profit maximisation. The output of estimation is a model that maximises some measure of model fit, subject to costs that may be interpreted as the shadow price of constraints imposed on the model. The replication crisis may be regarded as a market failure in which the price of “significant” results is lower than would be socially optimal. View Full-Text
Keywords: replication crisis; profit maximization; market failure replication crisis; profit maximization; market failure
MDPI and ACS Style

Quiggin, J. The Replication Crisis as Market Failure. Econometrics 2019, 7, 44.

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