Abstract
This paper provides resources and methods for confronting and refuting “the pessimistic bias.” This bias was identified by Bryan Caplan in The Myth of the Rational Voter: Why Democracies Choose Bad Policies (2007.) Caplan defines the pessimistic bias as “a tendency to overestimate the severity of economic problems and underestimate the (recent) past, present, and future performance of the economy.” It originates in the gap between public perceptions and historical reality. Professors and students of economics should: (1) be aware of the problem, and (2) have tools and methods to address this commonly-held bias.
Recommended Citation
(2026)
"Dispelling the Pessimistic Bias,"
Journal of Economics and Finance Education: Vol. 13:
Iss.
2, Article 2.
Available at:
https://scholarship.rollins.edu/jefe/vol13/iss2/2
