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Estimating Mexican municipal-level economic activity indicators using nighttime lights

Author

Listed:
  • Francisco Corona

    (Instituto Nacional de Estadística y Geografía)

  • Elio Atenógenes Villaseñor

    (Instituto Nacional de Estadística y Geografía)

  • Jesús López-Pérez

    (Instituto Nacional de Estadística y Geografía)

  • Ranyart R. Suárez

    (Instituto Nacional de Estadística y Geografía)

Abstract

In this paper we address the problem of estimating of Municipal-level of Mexican economic activity indicators (IAEM in Spanish) by using different data sources. We build on the preliminary estimations of López-Pérez and Corona (Real Datos Espac Rev Int Estad Geogr 1(3):102–123, 2020), however because of the shortcomings of standard data sources, such as national accounts and economic censuses, in terms of update frequency, this study enhances preliminary estimations with nighttime lights data. We rely on the statistic relation between economic activity with nighttime lights intensity, and the uncorrelatedness of the latter with the measurement error in the preliminary estimations to produce an estimate of true economic growth, as has been described, among others, in and Mendoza (Empir Econ 57(3):971–990, 2019). Our results are interesting in three ways: (i) develops a practitioner's guide for estimating IAEM for all Mexican municipalities since 1993, (ii) for users and analysts of economic information provides detailed results of economic activity evolution for some municipalities, (iii) represent a novel application pursuant Big Data in economics framework.

Suggested Citation

  • Francisco Corona & Elio Atenógenes Villaseñor & Jesús López-Pérez & Ranyart R. Suárez, 2023. "Estimating Mexican municipal-level economic activity indicators using nighttime lights," Empirical Economics, Springer, vol. 65(3), pages 1197-1214, September.
    • Handle: RePEc:spr:empeco:v:65:y:2023:i:3:d:10.1007_s00181-023-02376-z
    DOI: 10.1007/s00181-023-02376-z
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    References listed on IDEAS

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    1. Víctor M. Guerrero & Juan A. Mendoza, 2019. "On measuring economic growth from outer space: a single country approach," Empirical Economics, Springer, vol. 57(3), pages 971-990, September.
    2. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    3. Jaqueson K. Galimberti, 2020. "Forecasting GDP Growth from Outer Space," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(4), pages 697-722, August.
    4. Hu, Yingyao & Yao, Jiaxiong, 2022. "Illuminating economic growth," Journal of Econometrics, Elsevier, vol. 228(2), pages 359-378.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    True economic activity; Big data; Economic censuses; Municipal-level economic activity indicators; Nighttime lights;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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