Attention Economy


Monday, September 4, 2017

Satellite Images and Measurement of Economic Activity

Interesting summary of recent research – When economists look to the sky
“Economists are increasingly turning to data from satellite images to estimate the level of economic activity in regions where economic data is erratic or unavailable”

Related:
An interesting new paper:
China's GDP Growth May be Understated by Hunter Clark, Maxim Pinkovskiy, Xavier Sala-i-Martin
NBER Working Paper No. 23323 [April 2017]
Abstract:
Concerns about the quality of China’s official GDP statistics have been a perennial question in understanding its economic dynamics. We use data on satellite-recorded nighttime lights as an independent benchmark for comparing various published indicators of the state of the Chinese economy. Using the methodology of Pinkovskiy and Sala-i-Martin (2016a and b), we exploit nighttime lights to compute the optimal weights for various Chinese economic indicators in a best unbiased predictor of Chinese growth rates. Our computations of Chinese growth based on optimal weightings of various combinations of economic indicators provide evidence against the hypothesis that the Chinese economy contracted precipitously in late 2015, and are consistent with the rate of Chinese growth being higher than is reported in the official statistics.