The economic research policymakers actually need

Curated on Posted on by Stefaan Verhulst

Blog by Jed Kolko: “…The structure of academia just isn’t set up to produce the kind of research many policymakers need. Instead, top academic journal editors and tenure committees reward research that pushes the boundaries of the discipline and makes new theoretical or empirical contributions. And most academic papers presume familiarity with the relevant academic literature, making it difficult for anyone outside of academia to make the best possible use of them.

The most useful research often came instead from regional Federal Reserve banks, non-partisan think-tanks, the corporate sector, and from academics who had the support, freedom, or job security to prioritize policy relevance. It generally fell into three categories:

  1. New measures of the economy
  2. Broad literature reviews
  3. Analyses that directly quantify or simulate policy decisions.

If you’re an economic researcher and you want to do work that is actually helpful for policymakers — and increases economists’ influence in government — aim for one of those three buckets.

The pandemic and its aftermath brought an urgent need for data at higher frequency, with greater geographic and sectoral detail, and about ways the economy suddenly changed. Some of the most useful research contributions during that period were new data and measures of the economy: they were valuable as ingredients rather than as recipes or finished meals. Here are some examples:

Technological Progress and Rent Seeking

Curated on Posted on by Stefaan Verhulst

Paper by Vincent Glode & Guillermo Ordoñez: “We model firms’ allocation of resources across surplus-creating (i.e., productive) and surplus-appropriating (i.e., rent-seeking) activities. Our model predicts that industry-wide technological advancements, such as recent progress in data collection and processing, induce a disproportionate and socially inefficient reallocation of resources toward surplus-appropriating activities. As technology improves, firms rely more on appropriation to obtain their profits, endogenously reducing the impact of technological progress on economic progress and inflating the price of the resources used for both types of activities. We apply our theoretical insights to shed light on the rise of high-frequency trading…(More)”,

The CFPB wants to rein in data brokers

Curated on Posted on by Stefaan Verhulst

Article by Gaby Del Valle: “The Consumer Financial Protection Bureau wants to propose new regulations that would require data brokers to comply with the Fair Credit Reporting Act. In a speech at the White House earlier this month, CFPB Director Rohit Chopra said the agency is looking into policies to “ensure greater accountability” for companies that buy and sell consumer data, in keeping with an executive order President Joe Biden issued in late February.

Chopra said the agency is considering proposals that would define data brokers that sell certain types of data as “consumer reporting agencies,” thereby requiring those companies to comply with the Fair Credit Reporting Act (FCRA). The statute bans sharing certain kinds of data (e.g., your credit report) with entities unless they serve a specific purpose outlined in the law (e.g., if the report is used for employment purposes or to extend a line of credit to someone).

The CFBP views the buying and selling of consumer data as a national security issue, not just a matter of privacy. Chopra mentioned three massive data breaches — the 2015 Anthem leak, the 2017 Equifax hack, and the 2018 Marriott breach — as examples of foreign adversaries illicitly obtaining Americans’ personal data. “When Americans’ health information, financial information, and even their travel whereabouts can be assembled into detailed dossiers, it’s no surprise that this raises risks when it comes to safety and security,” Chopra said. But the focus on high-profile hacks obscures a more pervasive, totally legal phenomenon: data brokers’ ability to sell detailed personal information to anyone who’s willing to pay for it…(More)”.

Social Movements and Public Opinion in the United States

Curated on Posted on by Stefaan Verhulst

Paper by Amory Gethin & Vincent Pons: “Recent social movements stand out by their spontaneous nature and lack of stable leadership, raising doubts on their ability to generate political change. This article provides systematic evidence on the effects of protests on public opinion and political attitudes. Drawing on a database covering the quasi-universe of protests held in the United States, we identify 14 social movements that took place from 2017 to 2022, covering topics related to environmental protection, gender equality, gun control, immigration, national and international politics, and racial issues. We use Twitter data, Google search volumes, and high-frequency surveys to track the evolution of online interest, policy views, and vote intentions before and after the outset of each movement. Combining national-level event studies with difference-in-differences designs exploiting variation in local protest intensity, we find that protests generate substantial internet activity but have limited effects on political attitudes. Except for the Black Lives Matter protests following the death of George Floyd, which shifted views on racial discrimination and increased votes for the Democrats, we estimate precise null effects of protests on public opinion and electoral behavior…(More)”.

New Jersey is turning to AI to improve the job search process

Curated on Posted on by Stefaan Verhulst

Article by Beth Simone Noveck: “Americans are experiencing some conflicting feelings about AI.

While people are flocking to new roles like prompt engineer and AI ethicist, the technology is also predicted to put many jobs at risk, including computer programmers, data scientists, graphic designers, writers, lawyers.

Little wonder, then, that a national survey by the Heldrich Center for Workforce Development found an overwhelming majority of Americans (66%) believe that they “will need more technological skills to achieve their career goals.” One thing is certain: Workers will need to train for change. And in a world of misinformation-filled social media platforms, it is increasingly important for trusted public institutions to provide reliable, data-driven resources.

In New Jersey, we’ve tried doing just that by collaborating with workers, including many with disabilities, to design technology that will support better decision-making around training and career change. Investing in similar public AI-powered tools could help support better consumer choice across various domains. When a public entity designs, controls and implements AI, there is a far greater likelihood that this powerful technology will be used for good.

In New Jersey, the public can find reliable, independent, unbiased information about training and upskilling on the state’s new MyCareer website, which uses AI to make personalized recommendations about your career prospects, and the training you will need to be ready for a high-growth, in-demand job…(More)”.

Understanding the Crisis in Institutional Trust

Curated on Posted on by Stefaan Verhulst

Essay by Jacob Harold: “Institutions are patterns of relationship. They form essential threads of our social contract. But those threads are fraying. In the United States, individuals’ trust in major institutions has declined 22 percentage points since 1979.

Institutions face a range of profound challenges. A long-overdue reckoning with the history of racial injustice has highlighted how many institutions reflect patterns of inequity. Technology platforms have supercharged access to information but also reinforced bubbles of interpretation. Anti-elite sentiment has evolved into anti-institutional rebellion.

These forces are affecting institutions of all kinds—from disciplines like journalism to traditions like the nuclear family. This essay focuses on a particular type of institution: organizations. The decline in trust in organizations has practical implications: trust is essential to the day-to-day work of an organization—whether an elite university, a traffic court, or a corner store. The stakes for society are hard to overstate. Organizations “organize” much of our society, culture, and economy.

This essay is meant to offer background for ongoing conversations about the crisis in institutional trust. It does not claim to offer a solution; instead, it lays out the parts of the problem as a step toward shared solutions.

It is not possible to isolate the question of institutional trust from other trends. The institutional trust crisis is intertwined with broader issues of polarization, gridlock, fragility, and social malaise. Figure 1 maps out eight adjacent issues. Some of these may be seen as drivers of the institutional trust crisis, others as consequences of it. Most are both.

figure of institution trust crisis

This essay considers trust as a form of information. It is data about the external perceptions of institutions. Declining trust can thus be seen as society teaching itself. Viewing a decline in trust as information reframes the challenge. Sometimes, institutions may “deserve” some of the mistrust that has been granted to them. In those cases, the information can serve as a direct corrective…(More)”.

Mechanisms for Researcher Access to Online Platform Data

Curated on Posted on by Stefaan Verhulst

Status Report by the EU/USA: “Academic and civil society research on prominent online platforms has become a crucial way to understand the information environment and its impact on our societies. Scholars across the globe have leveraged application programming interfaces (APIs) and web crawlers to collect public user-generated content and advertising content on online platforms to study societal issues ranging from technology-facilitated gender-based violence, to the impact of media on mental health for children and youth. Yet, a changing landscape of platforms’ data access mechanisms and policies has created uncertainty and difficulty for critical research projects.


The United States and the European Union have a shared commitment to advance data access for researchers, in line with the high-level principles on access to data from online platforms for researchers announced at the EU-U.S. Trade and Technology Council (TTC) Ministerial Meeting in May 2023.1 Since the launch of the TTC, the EU Digital Services Act (DSA) has gone into effect, requiring providers of Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) to provide increased transparency into their services. The DSA includes provisions on transparency reports, terms and conditions, and explanations for content moderation decisions. Among those, two provisions provide important access to publicly available content on platforms:


• DSA Article 40.12 requires providers of VLOPs/VLOSEs to provide academic and civil society researchers with data that is “publicly accessible in their online interface.”
• DSA Article 39 requires providers of VLOPs/VLOSEs to maintain a public repository of advertisements.

The announcements related to new researcher access mechanisms mark an important development and opportunity to better understand the information environment. This status report summarizes a subset of mechanisms that are available to European and/or United States researchers today, following, in part VLOPs and VLOSEs measures to comply with the DSA. The report aims at showcasing the existing access modalities and encouraging the use of these mechanisms to study the impact of online platform’s design and decisions on society. The list of mechanisms reviewed is included in the Appendix…(More)”

DC launched an AI tool for navigating the city’s open data

Curated on Posted on by Stefaan Verhulst

Article by Kaela Roeder: “In a move echoing local governments’ increasing attention toward generative artificial intelligence across the country, the nation’s capital now aims to make navigating its open data easier through a new public beta pilot.

DC Compass, launched in March, uses generative AI to answer user questions and create maps from open data sets, ranging from the district’s population to what different trees are planted in the city. The Office of the Chief Technology Officer (OCTO) partnered with the geographic information system (GIS) technology company Esri, which has an office in Vienna, Virginia, to create the new tool.

This debut follows Mayor Muriel Bowser’s signing of DC’s AI Values and Strategic Plan in February. The order requires agencies to assess if using AI is in alignment with the values it sets forth, including that there’s a clear benefit to people; a plan for “meaningful accountability” for the tool; and transparency, sustainability, privacy and equity at the forefront of deployment.

These values are key when launching something like DC Compass, said Michael Rupert, the interim chief technology officer for digital services at the Office of the Chief Technology Officer.

“The way Mayor Bowser rolled out the mayor’s order and this value statement, I think gives residents and businesses a little more comfort that we aren’t just writing a check and seeing what happens,” Rupert said. “That we’re actually methodically going about it in a responsible way, both morally and fiscally.”..(More)”.

Screenshot of AI portal with black text and data tables over white background

DC COMPASS IN ACTION. (SCREENSHOT/COURTESY OCTO)

The Unintended Consequences of Data Standardization

Curated on Posted on by Stefaan Verhulst

Article by Cathleen Clerkin: “The benefits of data standardization within the social sector—and indeed just about any industry—are multiple, important, and undeniable. Access to the same type of data over time lends the ability to track progress and increase accountability. For example, over the last 20 years, my organization, Candid, has tracked grantmaking by the largest foundations to assess changes in giving trends. The data allowed us to demonstrate philanthropy’s disinvestment in historically Black colleges and universities. Data standardization also creates opportunities for benchmarking—allowing individuals and organizations to assess how they stack up to their colleagues and competitors. Moreover, large amounts of standardized data can help predict trends in the sector. Finally—and perhaps most importantly to the social sector—data standardization invariably reduces the significant reporting burdens placed on nonprofits.

Yet, for all of its benefits, data is too often proposed as a universal cure that will allow us to unequivocally determine the success of social change programs and processes. The reality is far more complex and nuanced. Left unchecked, the unintended consequences of data standardization pose significant risks to achieving a more effective, efficient, and equitable social sector…(More)”.

Creating an Integrated System of Data and Statistics on Household Income, Consumption, and Wealth: Time to Build

Curated on Posted on by Stefaan Verhulst

Report by the National Academies: “Many federal agencies provide data and statistics on inequality and related aspects of household income, consumption, and wealth (ICW). However, because the information provided by these agencies is often produced using different concepts, underlying data, and methods, the resulting estimates of poverty, inequality, mean and median household income, consumption, and wealth, as well as other statistics, do not always tell a consistent or easily interpretable story. Measures also differ in their accuracy, timeliness, and relevance so that it is difficult to address such questions as the effects of the Great Recession on household finances or of the Covid-19 pandemic and the ensuing relief efforts on household income and consumption. The presence of multiple, sometimes conflicting statistics at best muddies the waters of policy debates and, at worst, enable advocates with different policy perspectives to cherry-pick their preferred set of estimates. Achieving an integrated system of relevant, high-quality, and transparent household ICW data and statistics should go far to reduce disagreement about who has how much, and from what sources. Further, such data are essential to advance research on economic wellbeing and to ensure that policies are well targeted to achieve societal goals…(More)”.