{"id":161250,"date":"2022-01-12T20:16:56","date_gmt":"2022-01-12T14:46:56","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=161250"},"modified":"2022-01-12T20:16:56","modified_gmt":"2022-01-12T14:46:56","slug":"the-pros-and-cons-of-big-data-used-as-economic-signals","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-pros-and-cons-of-big-data-used-as-economic-signals\/","title":{"rendered":"The pros and cons of big data used as economic signals"},"content":{"rendered":"\n

News:\u00a0<\/span><\/b>Big data is being used for various types of analysis like economic growth. However, there are\u00a0certain\u00a0pros and cons linked to this type of analysis.\u00a0<\/span>\u00a0<\/span><\/p>\n

Google recently released some anonymized data for India, based on mobile phone locations of the users. As per the\u00a0data,\u00a0People are spending more time at home, rather than at work places or retail stores or parks. It means people are facing issue of restricted mobility once again.\u00a0<\/span>\u00a0<\/span><\/p>\n

The new forms of data are very useful in tracking economic activities in a country, without waiting for structured\u00a0government\u00a0surveys\u00a0and quarterly estimates.\u00a0These structured surveys fail to understand a rapidly evolving situation.\u00a0<\/span>\u00a0<\/span><\/p>\n

For example; mobility data\u00a0can predict a change in economic activities.<\/span>\u00a0<\/span><\/p>\n

How mobility data\u00a0is linked to economic activities?<\/span><\/b>\u00a0<\/span><\/p>\n

Economists at the\u00a0Organisation\u00a0For\u00a0Economic Co-operation and Development (OECD) observed a link between mobility trends and economic growth. They found out that impact of mobility indicators on economic growth\u00a0has weakened with successive quarters during pandemic.\u00a0There are two possible reasons for this.<\/span>\u00a0<\/span><\/p>\n

First,<\/span><\/b>\u00a0policymakers are restricting specific types of economic activity, instead of blanket ban on movement.\u00a0<\/span>\u00a0<\/span><\/p>\n

Second,<\/span><\/b>\u00a0Org and employees have learned to adapt to newer forms of work and leisure.<\/span>\u00a0<\/span><\/p>\n

For example,<\/span><\/b>\u00a0in the second and third quarters of 2020, a\u00a010%\u00a0point\u00a0change in mobility was associated with a 2.2%\u00a0change in economic growth. While in 4<\/span>th<\/span>\u00a0quarter,\u00a0it only resulted in a 0.9% change in economic growth.\u00a0<\/span>\u00a0<\/span><\/p>\n

Challenges associated with big data-based analysis<\/span><\/b>\u00a0<\/span><\/p>\n

However, there are challenges associated with big data-based analysis.\u00a0<\/span>\u00a0<\/span><\/p>\n

For example, economists are using measurement of night lights past sundown as a proxy for economic activity.\u00a0However, some research papers have observed that clouds interfere with the way data on night lights can be captured by satellites. Thus,\u00a0during cloudy months, readings are low.\u00a0<\/span>\u00a0<\/span><\/p>\n

Second, the data from e-way bills generated during goods movement is a very useful advance indication of economic activity. Such e-way bills are not generated for services. Thus, a shift of demand from goods to services must result in\u00a0a\u00a0low number of e-way bills. So, it does not mean a slowdown in economic activities.\u00a0<\/span>\u00a0<\/span><\/p>\n

Source:\u00a0<\/span><\/b>This post is\u00a0created\u00a0based on the article<\/span>\u00a0\u201cThe pros and cons of big data used as economic signals\u201d\u00a0<\/span><\/b>published in\u00a0<\/span>Live Mint on 12<\/span><\/b>th<\/span><\/b>\u00a0Jan, 2022.\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News:\u00a0Big data is being used for various types of analysis like economic growth. However, there are\u00a0certain\u00a0pros and cons linked to this type of analysis.\u00a0\u00a0 Google recently released some anonymized data for India, based on mobile phone locations of the users. As per the\u00a0data,\u00a0People are spending more time at home, rather than at work places or… Continue reading The pros and cons of big data used as economic signals<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-161250","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":2,"cached_at":"","cached_date":1698329758},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/161250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=161250"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/161250\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=161250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=161250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=161250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}