IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v103y2018icp360-365.html
   My bibliography  Save this article

Statistical Tests as a Hindrance to Understanding

Author

Listed:
  • Lepenies, Philipp H.

Abstract

Albert O. Hirschman’s famous Principle of the Hiding Hand describes an unconscious predisposition of project managers: Projects are launched in the belief that one is prepared for every possible future difficulty. However, some potential problems are overlooked during the planning phase and surprisingly might surface later—making it necessary to deal with them. Recently, this concept was statistically tested by Bent Flyvbjerg in World Development, who concluded that the Principle is “wrong”, “biased” and “potentially disastrous.” However, it is not the Principle of the Hiding Hand that is faulty, but the methodological approach taken by Flyvbjerg. In fact, Flyvbjerg’s analysis is a telling example of what can go wrong if we assess the value of qualitative scholarship merely through the lens of large-n case quantitative analysis. Flyvbjerg seems to overlook both the context of the Hiding Hand and its connection to the work of Albert Hirschman. This article shows how specific notions of rigor can serve as a hindrance to understanding and thus belittle insights by one of the most original thinkers of the 20th century that are still useful in current debates on project management and expert behavior.

Suggested Citation

  • Lepenies, Philipp H., 2018. "Statistical Tests as a Hindrance to Understanding," World Development, Elsevier, vol. 103(C), pages 360-365.
  • Handle: RePEc:eee:wdevel:v:103:y:2018:i:c:p:360-365
    DOI: 10.1016/j.worlddev.2017.10.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X17303315
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.worlddev.2017.10.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Flyvbjerg, Bent, 2016. "The Fallacy of Beneficial Ignorance: A Test of Hirschman’s Hiding Hand," World Development, Elsevier, vol. 84(C), pages 176-189.
    2. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    3. Paul Krugman, 1997. "Development, Geography, and Economic Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 026261135x, December.
    4. Lepenies, Philipp H., 2004. "Exit, Voice, and Vouchers: Using Vouchers to Train Microentrepreneurs--Observations from the Paraguayan Voucher Scheme," World Development, Elsevier, vol. 32(4), pages 713-724, April.
    5. Dani Rodrik, 2006. "Goodbye Washington Consensus, Hello Washington Confusion? A Review of the World Bank's Economic Growth in the 1990s: Learning from a Decade of Reform," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 973-987, December.
    6. Bent Flyvbjerg & Cass R. Sunstein, 2015. "The Principle of the Malevolent Hiding Hand; or, the Planning Fallacy Writ Large," Papers 1509.01526, arXiv.org.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Love, Peter E.D. & Ika, Lavagnon A. & Ahiaga-Dagbui, Dominic D., 2019. "On de-bunking ‘fake news’ in a post truth era: Why does the Planning Fallacy explanation for cost overruns fall short?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 397-408.
    2. Alan Walsh & Peter Walker, 2021. "Re-Evaluating Megaproject Cost Overruns: Putting Changes Into Perspective," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 6(6), pages 19-29, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ika, Lavagnon A., 2018. "Beneficial or Detrimental Ignorance: The Straw Man Fallacy of Flyvbjerg’s Test of Hirschman’s Hiding Hand," World Development, Elsevier, vol. 103(C), pages 369-382.
    2. Flyvbjerg, Bent, 2018. "Planning Fallacy or Hiding Hand: Which is the Better Explanation?," World Development, Elsevier, vol. 103(C), pages 383-386.
    3. Torgler, Benno & Schneider, Friedrich & Schaltegger, Christoph A., 2007. "With or Against the People? The Impact of a Bottom-Up Approach on Tax Morale and the Shadow Economy," Berkeley Olin Program in Law & Economics, Working Paper Series qt6331x6vz, Berkeley Olin Program in Law & Economics.
    4. Christina Leuker & Thorsten Pachur & Ralph Hertwig & Timothy J. Pleskac, 2019. "Do people exploit risk–reward structures to simplify information processing in risky choice?," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 5(1), pages 76-94, August.
    5. Julia M. Puaschunder, 2019. "Artificial Intelligence Market Disruption," Proceedings of the 13th International RAIS Conference, June 10-11, 2019 01 JP, Research Association for Interdisciplinary Studies.
    6. Ranganathan, Kavitha & Lejarraga, Tomás, 2021. "Elicitation of risk preferences through satisficing," Journal of Behavioral and Experimental Finance, Elsevier, vol. 32(C).
    7. Andrew Caplin & Mark Dean & Daniel Martin, 2011. "Search and Satisficing," American Economic Review, American Economic Association, vol. 101(7), pages 2899-2922, December.
    8. Shi, Yi & Deng, Yawen & Wang, Guoan & Xu, Jiuping, 2020. "Stackelberg equilibrium-based eco-economic approach for sustainable development of kitchen waste disposal with subsidy policy: A case study from China," Energy, Elsevier, vol. 196(C).
    9. Lawrence Bunnell & Kweku-Muata Osei-Bryson & Victoria Y. Yoon, 0. "RecSys Issues Ontology: A Knowledge Classification of Issues for Recommender Systems Researchers," Information Systems Frontiers, Springer, vol. 0, pages 1-42.
    10. da Silveira, Jaylson Jair & Lima, Gilberto Tadeu, 2021. "Wage inequality as a source of endogenous macroeconomic fluctuations," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 35-52.
    11. Marianne Bertrand & Dean S. Karlan & Sendhil Mullainathan & Eldar Shafir & Jonathan Zinman, 2005. "What's Psychology Worth? A Field Experiment in the Consumer Credit Market," Working Papers 918, Economic Growth Center, Yale University.
    12. Rolf Bergs, 2021. "Spatial dependence in the rank-size distribution of cities – weak but not negligible," PLOS ONE, Public Library of Science, vol. 16(2), pages 1-16, February.
    13. Manolis, Chris & Nygaard, Arne & Stillerud, Bård, 1997. "Uncertainty and vertical control: An international investigation," International Business Review, Elsevier, vol. 6(5), pages 501-518, October.
    14. Elizabeth J. Altman & Frank Nagle & Michael L. Tushman, 2013. "Innovating Without Information Constraints: Organizations, Communities, and Innovation When Information Costs Approach Zero," Harvard Business School Working Papers 14-043, Harvard Business School, revised Sep 2014.
    15. Gerd Gigerenzer, 1997. "Bounded Rationality: Models of Fast and Frugal Inference," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 133(II), pages 201-218, June.
    16. Jhunjhunwala, Tanushree, 2021. "Searching to avoid regret: An experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 298-319.
    17. Jacopo Arpetti & Antonio Iovanella, 2019. "Towards more effective consumer steering via network analysis," Papers 1903.11469, arXiv.org, revised Nov 2019.
    18. Schilling, Melissa A. & Green, Elad, 2011. "Recombinant search and breakthrough idea generation: An analysis of high impact papers in the social sciences," Research Policy, Elsevier, vol. 40(10), pages 1321-1331.
    19. Rok Spruk & Mitja Kovac, 2018. "Inefficient Growth," Review of Economics and Institutions, Università di Perugia, vol. 9(2).
    20. DeCanio, Stephen J. & Watkins, William E., 1998. "Information processing and organizational structure," Journal of Economic Behavior & Organization, Elsevier, vol. 36(3), pages 275-294, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:103:y:2018:i:c:p:360-365. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.