Specification Curve: Descriptive and Inferential Statistics on All Reasonable Specifications
Published on Nov 24, 2015
· DOI :10.2139/ssrn.2694998
Empirical results often hinge on data analytic decisions that are simultaneously defensible, arbitrary, and motivated. To mitigate this problem we introduce Specification-Curve Analysis, which consists of three steps: (i) identifying the set of theoretically justified, statistically valid, and non-redundant analytic specifications, (ii) displaying alternative results graphically, allowing the identification of decisions producing different results, and (iii) conducting statistical tests to determine whether as a whole results are inconsistent with the null hypothesis. We illustrate its use by applying it to three published findings. One proves robust, one weak, one not robust at all.