Working Paper: NBER ID: w19035
Authors: Liran Einav; Jonathan D. Levin
Abstract: Many believe that "big data" will transform business, government and other aspects of the economy. In this article we discuss how new data may impact economic policy and economic research. Large-scale administrative datasets and proprietary private sector data can greatly improve the way we measure, track and describe economic activity. They also can enable novel research designs that allow researchers to trace the consequences of different events or policies. We outline some of the challenges in accessing and making use of these data. We also consider whether the big data predictive modeling tools that have emerged in statistics and computer science may prove useful in economics.
Keywords: big data; economic policy; economic research; predictive modeling
JEL Codes: C10; C18; C50; C80
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| big data (C55) | economic policy and research (E69) |
| large-scale datasets (C55) | improvements in economic measurements (E01) |
| large administrative datasets (C55) | tracing consequences of events or policies (E65) |
| better real-time data capture and processing (C55) | improve government operations (H11) |
| better real-time data capture and processing (C55) | inform economic policymaking (E64) |
| predictive modeling tools (C52) | better economic outcomes (P17) |
| predictive modeling tools (C52) | more effective policy decisions (D78) |