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The Data Revolution and Economic Analysis

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  • Liran Einav
  • Jonathan 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 data sets and proprietary private sector data can greatly improve the way we measure, track, and describe economic activity. They can also 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.

Suggested Citation

  • Liran Einav & Jonathan Levin, 2014. "The Data Revolution and Economic Analysis," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 1-24.
    • Handle: RePEc:ucp:ipolec:doi:10.1086/674019
    DOI: 10.1086/674019
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    More about this item

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General

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