Monday, March 12, 2007
GOVERNMENT DECISION MAKING AND TYPE II ERROR BIAS
It has long been affirmed by economists that the FDA’s drug approval process suffers from type II error bias. This results in fewer drugs coming to the market that could improve the well being of millions. In the April 2006 journal Public Choice Russel Sobell and Peter Leeson explain that type II error bias played a role in the delayed response of the federal government after hurricane Katrina. In the next few posts I plan to explain type I and type II errors, and type II error bias in government decision making.