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Downloading Wisdom from Online Crowds

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Author Info
Saiz, Albert () (Wharton School, University of Pennsylvania)
Simonsohn, Uri () (University of California, San Diego)

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Abstract

The internet and other large textual databases contain billions of documents: is there useful information in the number of documents written about different topics? We propose, based on the premise that the occurrence of a phenomenon increases the likelihood that people write about it, that the relative frequency of documents discussing a phenomenon can be used to proxy for the corresponding occurrence-frequency. After establishing the conditions under which such proxying is likely to be successful, we construct proxies for a number of demographic variables in the US and for corruption across countries and US states and cities, obtaining average correlations with occurrence-frequencies of 0.47 and 0.61 respectively. We also replicate results from two separate published papers establishing the correlates of corruption at both the state and country level. Finally, we construct the first index of corruption in US cities and study its correlates.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3809.

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Date of creation: Oct 2008
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Handle: RePEc:iza:izadps:dp3809

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Related research
Keywords: proxy variables; document-frequency; textual databases; internet;

Find related papers by JEL classification:
J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts
C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General

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  1. Stefano DellaVigna & Eliana La Ferrara, 2007. "Detecting Illegal Arms Trade," NBER Working Papers 13355, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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