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Statistical Significance, p-Values, and the Reporting of Uncertainty

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  • Guido W. Imbens

Abstract

The use of statistical significance and p-values has become a matter of substantial controversy in various fields using statistical methods. This has gone as far as some journals banning the use of indicators for statistical significance, or even any reports of p-values, and, in one case, any mention of confidence intervals. I discuss three of the issues that have led to these often-heated debates. First, I argue that in many cases, p-values and indicators of statistical significance do not answer the questions of primary interest. Such questions typically involve making (recommendations on) decisions under uncertainty. In that case, point estimates and measures of uncertainty in the form of confidence intervals or even better, Bayesian intervals, are often more informative summary statistics. In fact, in that case, the presence or absence of statistical significance is essentially irrelevant, and including them in the discussion may confuse the matter at hand. Second, I argue that there are also cases where testing null hypotheses is a natural goal and where p-values are reasonable and appropriate summary statistics. I conclude that banning them in general is counterproductive. Third, I discuss that the overemphasis in empirical work on statistical significance has led to abuse of p-values in the form of p-hacking and publication bias. The use of pre-analysis plans and replication studies, in combination with lowering the emphasis on statistical significance may help address these problems.

Suggested Citation

  • Guido W. Imbens, 2021. "Statistical Significance, p-Values, and the Reporting of Uncertainty," Journal of Economic Perspectives, American Economic Association, vol. 35(3), pages 157-174, Summer.
  • Handle: RePEc:aea:jecper:v:35:y:2021:i:3:p:157-74
    DOI: 10.1257/jep.35.3.157
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    8. Heckelei, Thomas & Huettel, Silke & Odening, Martin & Rommel, Jens, 2021. "The replicability crisis and the p-value debate – what are the consequences for the agricultural and food economics community?," Discussion Papers 316369, University of Bonn, Institute for Food and Resource Economics.
    9. Graham Elliott & Nikolay Kudrin & Kaspar Wuthrich, 2022. "The Power of Tests for Detecting $p$-Hacking," Papers 2205.07950, arXiv.org, revised Apr 2024.
    10. Kopp, Thomas & Nabernegg, Markus & Lange, Steffen, 2023. "The net climate effect of digitalization, differentiating between firms and households," Energy Economics, Elsevier, vol. 126(C).
    11. Kopp, Thomas & Nabernegg, Markus, 2022. "Inequality and Environmental Impact – Can the Two Be Reduced Jointly?," Ecological Economics, Elsevier, vol. 201(C).
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    15. Cantone, Giulio Giacomo, 2023. "The multiversal methodology as a remedy of the replication crisis," MetaArXiv kuhmz, Center for Open Science.
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    17. Dumont, Michel, 2022. "Public support to business research and development in Belgium: fourth evaluation," MPRA Paper 115418, University Library of Munich, Germany.
    18. Jae H. Kim, 2022. "Moving to a world beyond p-value," Review of Managerial Science, Springer, vol. 16(8), pages 2467-2493, November.
    19. repec:ags:aaea22:335467 is not listed on IDEAS
    20. Monica P. Bhatt & Sara B. Heller & Max Kapustin & Marianne Bertrand & Christopher Blattman, 2023. "Predicting and Preventing Gun Violence: An Experimental Evaluation of READI Chicago," NBER Working Papers 30852, National Bureau of Economic Research, Inc.
    21. Ghislain B. D. Aihounton & Arne Henningsen, 2023. "Does Organic Farming Jeopardize Food and Nutrition Security?," IFRO Working Paper 2023/02, University of Copenhagen, Department of Food and Resource Economics.
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    More about this item

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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