Journal of Economic Literature
Book Reviews
2026-09-01
Saul H. Hymans of University of Michigan reviews “The Cult of Statistical Significance: How the Standard Error Costs Us Jobs, Justice, and Lives” by Stephen T. Ziliak, Deirdre N. McCloskey,. The EconLit Abstract of the reviewed work begins “Examines the flaws in the scientific technique of “statistical significance” through an exploration of its application in a broad spectrum of fields, and considers how to bring the statistical sciences back on track. Discusses statistical significance as a significant problem; dieting “significance” and the case of Vioxx; the sizeless stare of statistical significance; what the sizeless scientists say in defense; better practice---beta-importance versus alpha-“significance”; what can go wrong in the use of significance tests in economics; what went wrong in the American Economic Review during the 1980s; whether economic practice is improving; how big is big in economics; what the sizeless stare costs, economically speaking; how economics stays that way--the textbooks and the referees; the not-boring rise of significance in psychology; whether psychometrics lacks power; the psychology of psychological significance testing; medicine seeking a magic pill; Kenneth Rothman’s revolt; drugs, disability, and death; Francis Edgeworth’s significance; Karl Pearson’s rule; statistical significance in Pearson’s journal Biometrika; William Sealy Gosset--the fable of the bee; R. A. Fisher--the fable of the wasp; how the wasp stung the bee and took over some sciences; eighty years of trained incapacity--how such a thing could happen; and what to do. Ziliak is Professor of Economics at… Index.”