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  3. Journal of Economic Literature
  4. June 2024
  5. Data and the Aggregate Economy

Journal of Economic Literature

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

Data and the Aggregate Economy

  • Laura Veldkamp
  • Cindy Chung
Journal of Economic Literature
vol. 62, no. 2, June 2024
(pp. 458–84)
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Abstract

Recent data technology innovations, such as artificial intelligence and machine learning, have transformed the production of knowledge and increased the importance of data. This review explores how data—digitized information—has been modeled within classic macroeconomic frameworks. It compares the economics of data to other concepts such as ideas, patents, and learning-by-doing. This paper also shows potential ways to model applications for data, including innovation, process optimization, and matching. Because this research area is nascent, much of the article is devoted to open questions and directions for future data economy research.

Citation

Veldkamp, Laura, and Cindy Chung. 2024. "Data and the Aggregate Economy." Journal of Economic Literature, 62 (2): 458–84. DOI: 10.1257/jel.20221580

Additional Materials

JEL Classification

  • C80 Data Collection and Data Estimation Methodology; Computer Programs: General
  • D21 Firm Behavior: Theory
  • D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
  • E23 Macroeconomics: Production
  • E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
  • J23 Labor Demand