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The Value of Luminosity Data as a Proxy for Economic Statistics

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Abstract

One of the pervasive issues in social and environmental research has been to improve the quality of socioeconomic data in developing countries. Because of the shortcoming of standard data sources, the present study examines luminosity (measures of nighttime lights) as a proxy for standard measures of output. The paper compares output and luminosity at the country levels and at the 1° x 1° grid-cell levels for the period 1992-2008. The results are that luminosity has very little value added for countries with high-quality statistical systems. However, it may be useful for countries with the lowest statistical grades, particularly for war-torn countries with no recent population or economic censuses. The results also indicate that luminosity has more value added for economic density estimates than for time-series growth rates.

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Bibliographic Info

Paper provided by Cowles Foundation for Research in Economics, Yale University in its series Cowles Foundation Discussion Papers with number 1766.

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Length: 43 pages
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:cwl:cwldpp:1766

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Keywords: Luminosity; Proxy variable; Measurement error in GDP; Gross grid-cell product;

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References

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  1. Simon Kuznets, 1934. "National Income, 1929-1932," NBER Chapters, in: National Income, 1929-1932, pages 1-12 National Bureau of Economic Research, Inc.
  2. Simon Johnson & William Larson & Chris Papageorgiou & Arvind Subramanian, 2009. "Is Newer Better? Penn World Table Revisions and Their Impact on Growth Estimates," NBER Working Papers 15455, National Bureau of Economic Research, Inc.
  3. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2009. "Measuring Economic Growth from Outer Space," NBER Working Papers 15199, National Bureau of Economic Research, Inc.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Luminosity as an indicator of economic activity
    by Economic Logician in Economic Logic on 2010-09-30 17:38:00
  2. Ritchie asks
    by Tim Worstall in Tim Worstall on 2010-10-01 09:47:40
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Cited by:
  1. Stelios Michalopoulos & Elias Papaioannou, 2011. "Divide and Rule or the Rule of the Divided? Evidence from Africa," Economics Working Papers 0099, Institute for Advanced Study, School of Social Science.
  2. Michael Wurm & Hannes Taubenböck & Jan Goebel & Stefan Dech & Gert G. Wagner, 2010. "Menschen zählen aus dem All. Möglichkeiten und Grenzen von Satellitendaten zur Abschätzung der Bevölkerungsentwicklung und des Gebäudebestandes in deutschen Städten," Working Paper Series of the German Council for Social and Economic Data 155, German Council for Social and Economic Data (RatSWD).

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  1. Economic Logic blog

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