Systematically Biased Beliefs About Economics: Robust Evidence of Judgemental Anomalies from the Survey of Americans and Economists on the Economy
Differences between the general public"s "positive" economic views and economists" resemble other judgemental anomalies: Laypeople and experts "systematically" disagree. I analyse this puzzle using data from the Survey of Americans and Economists on the Economy. The paper first tests and decisively rejects the hypothesis that the differences solely reflect economists" self-serving bias. Then it examines whether economists" political ideology and party loyalties explain the disagreement; if anything, this slightly increases their magnitude. The effect of economic training clearly falls but remains large after adding education to the set of control variables. Apparent biases" robustness suggests that the anomaly is real. Copyright 2002 Royal Economic Society
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 112 (2002)
Issue (Month): 479 (April)
|Contact details of provider:|| Postal: |
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christina D. Romer & David H. Romer, 1997. "Reducing Inflation: Motivation and Strategy," NBER Books, National Bureau of Economic Research, Inc, number rome97-1, August.
- Robert J. Shiller, 1996.
"Why Do People Dislike Inflation?,"
Cowles Foundation Discussion Papers
1115, Cowles Foundation for Research in Economics, Yale University.
- Wittman, Donald, 1989. "Why Democracies Produce Efficient Results," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1395-1424, December.
- Linda Babcock & George Loewenstein, 1997. "Explaining Bargaining Impasse: The Role of Self-Serving Biases," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 109-126, Winter.
- Rabin, Matthew, 1997.
"Psychology and Economics,"
Department of Economics, Working Paper Series
qt8jd5z5j2, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Robert J. Shiller & Maxim Boycko & Vladimir Korobov, 1990.
"Popular Attitudes Towards Free Markets: The Soviet Union and the United States Compared,"
Cowles Foundation Discussion Papers
952, Cowles Foundation for Research in Economics, Yale University.
- Shiller, Robert J & Boycko, Maxim & Korobov, Vladimir, 1991. "Popular Attitudes toward Free Markets: The Soviet Union and the United States Compared," American Economic Review, American Economic Association, vol. 81(3), pages 385-400, June.
- Robert J. Shiller & Maxim Boycko & Vladimir Korobov, 1990. "Popular Attitudes Towards Free Markets: The Soviet Union and the United States Compared," NBER Working Papers 3453, National Bureau of Economic Research, Inc.
- Caplan, Bryan, 2001. "Rational Ignorance versus Rational Irrationality," Kyklos, Wiley Blackwell, vol. 54(1), pages 3-26.
- Fremling, Gertrud M & Lott, John R, Jr, 1996. "The Bias towards Zero in Aggregate Perceptions: An Explanation Based on Rationally Calculating Individuals," Economic Inquiry, Western Economic Association International, vol. 34(2), pages 276-95, April.
- Babcock, Linda & Wang, Xianghong & Lowenstein, George, 1996. "Choosing the Wrong Pond: Social Comparisons in Negotiations That Reflect a Self-Serving Bias," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 1-19, February.
- Fuchs, Victor R, 1996. "Economics, Values, and Health Care Reform," American Economic Review, American Economic Association, vol. 86(1), pages 1-24, March.
- Matthew Rabin., 1995.
"Moral Preferences, Moral Constraints, and Self-Serving Biases,"
Economics Working Papers
95-241, University of California at Berkeley.
- Rabin, Matthew, 1995. "Moral Preferences, Moral Constraints, and Self-Serving Biases," Department of Economics, Working Paper Series qt97r6t5vf, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Caplan, Bryan, 2001. " Rational Irrationality and the Microfoundations of Political Failure," Public Choice, Springer, vol. 107(3-4), pages 311-31, June.
- Eichenberger, Reiner & Serna, Angel, 1996. " Random Errors, Dirty Information, and Politics," Public Choice, Springer, vol. 86(1-2), pages 137-56, January.
- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
- Frey, Bruno S & Eichenberger, Reiner, 1992. "Economics and Economists: A European Perspective," American Economic Review, American Economic Association, vol. 82(2), pages 216-20, May.
When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:112:y:2002:i:479:p:433-458. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.