Credible Numbers: A Procedure for Reporting Statistical Precision in Parameter Estimates

Nicolas Astier and Frank A. Wolak

No 32124, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Econometric software packages typically report a fixed number of decimal digits for coefficient estimates and their associated standard errors. This practice misses the opportunity to use rounding rules that convey statistical precision. Using insights from the testing statistical hypotheses of equivalence literature, we propose a methodology that only reports decimal digits in a parameter estimate that reject a hypothesis of statistical equivalence. Applying this methodology to all articles published in the American Economic Review between 2000 and 2022, we find that over 60% of the printed digits in coefficient estimates do not convey statistically meaningful information according to our definition of a significant digit. If one additional digit beyond the last significant digit is reported for each coefficient estimate, then approximately one-third of the printed digits in our sample would not be reported.

JEL-codes: C01 C10 C12 (search for similar items in EconPapers)
Date: 2024-02
New Economics Papers: this item is included in nep-ecm
Note: EEE IO
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nber.org/papers/w32124.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
Working Paper: Credible Numbers: A Procedure for Reporting Statistical Precision in Parameter Estimates (2024)
Working Paper: Credible Numbers: A Procedure for Reporting Statistical Precision in Parameter Estimates (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:32124

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w32124
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().