Big data for big issues: Revealing travel patterns of low-income population based on smart card data mining in a global south unequal city


Paper by Caio Pieroni, Mariana Giannotti, Bianca B.Alves, and Renato Arbex: “Smart card data (SCD) allow analyzing mobility at a fine level of detail, despite the remaining challenges such as identifying trip purpose. The use of the SCD may improve the understanding of transit users’ travel patterns from precarious settlements areas, where the residents have historically limited access to opportunities and are usually underrepresented in surveys. In this paper, we explore smart card data mining to analyze the temporal and spatial patterns of the urban transit movements from residents of precarious settlements areas in São Paulo, Brazil, and compare the similarities and differences in travel behavior with middle/high-income-class residents. One of our concerns is to identify low-paid employment travel patterns from the low-income-class residents, that are also underrepresented in transportation planning modeling due to the lack of data. We employ the k-means clustering algorithm for the analysis, and the DBSCAN algorithm is used to infer passengers’ residence locations. The results reveal that most of the low-income residents of precarious settlements begin their first trip before, between 5 and 7 AM, while the better-off group begins from 7 to 9 AM. At least two clusters formed by commuters from precarious settlement areas suggest an association of these residents with low-paid employment, with their activities placed in medium / high-income residential areas. So, the empirical evidence revealed in this paper highlights smart card data potential to unfold low-paid employment spatial and temporal patterns….(More)”.

The Battle for Digital Privacy Is Reshaping the Internet


Brian X. Chen at The New York Times: “Apple introduced a pop-up window for iPhones in April that asks people for their permission to be tracked by different apps.

Google recently outlined plans to disable a tracking technology in its Chrome web browser.

And Facebook said last month that hundreds of its engineers were working on a new method of showing ads without relying on people’s personal data.

The developments may seem like technical tinkering, but they were connected to something bigger: an intensifying battle over the future of the internet. The struggle has entangled tech titans, upended Madison Avenue and disrupted small businesses. And it heralds a profound shift in how people’s personal information may be used online, with sweeping implications for the ways that businesses make money digitally.

At the center of the tussle is what has been the internet’s lifeblood: advertising.

More than 20 years ago, the internet drove an upheaval in the advertising industry. It eviscerated newspapers and magazines that had relied on selling classified and print ads, and threatened to dethrone television advertising as the prime way for marketers to reach large audiences….

If personal information is no longer the currency that people give for online content and services, something else must take its place. Media publishers, app makers and e-commerce shops are now exploring different paths to surviving a privacy-conscious internet, in some cases overturning their business models. Many are choosing to make people pay for what they get online by levying subscription fees and other charges instead of using their personal data.

Jeff Green, the chief executive of the Trade Desk, an ad-technology company in Ventura, Calif., that works with major ad agencies, said the behind-the-scenes fight was fundamental to the nature of the web…(More)”

Social welfare gains from innovation commons: Theory, evidence, and policy implications


Paper by Jason Potts, Andrew W. Torrance, Dietmar Harhoff and Eric A. von Hippel: “Innovation commons – which we define as repositories of freely-accessible, “open source” innovation-related information and data – are a very significant resource for innovating and innovation-adopting firms and individuals: Availability of free data and information reduces the innovation-specific private or open investment required to make the next innovative advance. Despite the clear social welfare value of innovation commons under many conditions, academic innovation research and innovation policymaking have to date focused almost entirely on enhancing private incentives to innovate by enabling innovators to keep some types of innovation-related information at least temporarily apart from the commons, via intellectual property rights.


In this paper, our focus is squarely on innovation commons theory, evidence, and policy implications. We first discuss the varying nature of and contents of innovation commons extant today. We summarize what is known about their functioning, their scale, the value they provide to innovators and to general social welfare, and the mechanisms by which this is accomplished. Perhaps somewhat counterintuitively, and with the important exception of major digital platform firms, we find that many who develop innovation-related information at private cost have private economic incentives to contribute their information to innovation commons for free access by free riders. We conclude with a discussion of the value of more general support for innovation commons, and how this could be provided by increased private and public investment in innovation commons “engineering”, and by specific forms of innovation policymaking to increase social welfare via enhancement of innovation commons….(More)”.

Co-Develop: Digital Public Infrastructure for an Equitable Recovery


A report by The Rockefeller Foundation: “Digital systems that accomplish basic, society-wide functions played a critical role in the response to the Covid-19 pandemic, enabling both public health and social protection measures. The pandemic has shown the value of these systems, but it has also revealed how they are non-existent or weak in far too many places.

As we build back better, we have an unprecedented opportunity to build digital public infrastructure that promotes inclusion, human rights, and progress toward global goals. This report outlines an agenda for international cooperation on digital public infrastructure to guide future investments and expansion of this critical tool.

6 Key Areas for International Cooperation on Digital Public Infrastructure

  1. A vision for digital public infrastructure as a whole, backed by practice, research, and evaluation.
  2. A global commons based on digital public goods.
  3. Safeguards for inclusion, trust, competition, security, and privacy.
  4. Tools that use data in digital public infrastructure for public value and private empowerment.
  5. Private and public capacity, particularly in implementing countries.
  6. Silo-busting, built-for-purpose coordinating, funding, and financing….(More)”.

The social value of data


Working paper by Diane Coyle and Annabel Manley: “Data sets, and the inferences made from them, are generating an increasing amount of value in modern economies. However, this value is typically not well captured in GDP, and in general, the absence of markets for data assets means there is no easy approach to measuring the value of data. Yet given the potential value that can be created from investing in data and making it available, this oversight could lead to underinvestment or too little access to data.

Data has certain economic characteristics that make market-based methods of determining value insufficient to understanding its true potential value to society.

First is its non-rival nature, in that one person or company’s use of a dataset does not affect whether another person or company can also use it.

Second is that datasets often involve externalities. For example, information externalities mean that the presence of one data point will increase the value of all other data points in the dataset. Conversely, loss of privacy would be a negative externality. Therefore, the potential to link two datasets creates complications for valuations as the combined dataset will have a value possibly greater than the sum of its parts. These characteristics mean that private markets will not deliver economically efficient social availability of data, and that market prices will not reflect social value.

The experiment

In our new working paper we test one potential method of determining the social value of a dataset: discrete choice analysis.

Discrete choice analysis is a type of ‘contingent valuation’ method used to elicit individuals’ willingness to pay, a measure of consumer surplus. The method we tested is frequently used in marketing research for pricing strategies, and so there are a number of software tools that will automate the survey design and analysis (we used conjoint.ly). More recently, contingent methods have also been used to value  ‘free’ digital goods, and for a pilot study by the ONS for valuing their own datasets….(More)”.

Leveraging Digitalisation for a Resilient, Strong, Sustainable and Inclusive Recovery


G20 Declaration: “…We recognise the importance of data-driven innovation and the growing demand of data across society. Coherent and responsible data governance frameworks that guide the reuse and sharing of data should ensure confidence and security, privacy, personal data protection and the protection and enforcement of intellectual property rights, taking into account differences in national legal systems. This could be accompanied by policies that foster investments in data infrastructure and architecture that have positive spillovers across industries and society. Increased, open and accessible government data could help encourage innovation, in particular among MSMEs….

We call for close coordination to promote statistical guidance and move from outcome measures of the digital gender divide to the analysis of enabling and disabling factors. To this end, we acknowledge the importance of developing sound statistical infrastructures, including through dedicated statistical surveys, appropriate domestic, national and international legal and technical frameworks for data access and use, while protecting personal data and privacy, strengthening of NSOs’ capabilities in using linked data, increased availability of open data, and enhanced collaboration with the private sector and relevant stakeholders, including in exploring alternative sources of data and data collection practices…

Moreover, rapid technological development in emerging technologies can offer the potential to transform the way in which G20 governments design and deliver public policies and services. We reaffirm our commitment to foster the conditions and competencies necessary to unlock the potential of digital technologies and data in order to ensure the resilience, security, human centricity, and sustainability of our governments, while managing risks related to security, data protection, including personal data, and privacy, and bias in algorithms. Particular attention should be paid to bridging all kinds of digital divides….(More) (PressRelease)”.

Using Satellite Imagery and Deep Learning to Evaluate the Impact of Anti-Poverty Programs


Paper by Luna Yue Huang, Solomon M. Hsiang & Marco Gonzalez-Navarro: “The rigorous evaluation of anti-poverty programs is key to the fight against global poverty. Traditional approaches rely heavily on repeated in-person field surveys to measure program effects. However, this is costly, time-consuming, and often logistically challenging. Here we provide the first evidence that we can conduct such program evaluations based solely on high-resolution satellite imagery and deep learning methods. Our application estimates changes in household welfare in a recent anti-poverty program in rural Kenya. Leveraging a large literature documenting a reliable relationship between housing quality and household wealth, we infer changes in household wealth based on satellite-derived changes in housing quality and obtain consistent results with the traditional field-survey based approach. Our approach generates inexpensive and timely insights on program effectiveness in international development programs…(More)”.

The One-Earth Balance Sheet


Essay by Andrew Sheng: “Modern science arose by breaking down complex problems into their parts. As Alvin Toffler, an American writer and futurist, wrote in his 1984 foreword to the chemist Ilya Prigogine’s classic book “Order out of Chaos”: “One of the most highly developed skills in contemporary Western civilization is dissection: the split-up of problems into their smallest possible components. We are good at it. So good, we often forget to put the pieces back together again.”

Specialization produces efficiency in production and output. But one unfortunate result is that silos produce a partial perspective from specialist knowledge; very few take a system-wide view on how the parts are related to the whole. When the parts do not fit or work together, the system may break down. As behavioral economist Daniel Kahnemann put it: “We can be blind to the obvious, and we are also blind to our blindness.”

Silos make group collective action more difficult; nation-states, tribes, communities and groups have different ways of knowing and different repositories of knowledge. A new collective mental map is needed, one that moves away from classical Newtonian science, with its linear and mechanical worldview, toward a systems-view of life. The ecologists Fritjof Capra and Pier Luigi Luisi argue that “the major problems of our time — energy, the environment, climate change, food security, financial security — cannot be understood in isolation. They are systemic problems, which means that they are all interconnected and interdependent.”

“Siloed thinking created many of our problems with inequality, injustice and planetary damage.”

A complex, non-linear, systemic view of life sees the whole as a constant interaction between the small and the large: diverse parts that are cooperating and competing at the same time. This organic view of life coincides with the ancient perspective found in numerous cultures — including Chinese, Indian, native Australian and Amerindian — that man and nature are one.

In short, modern Western science has begun to return to the pre-Enlightenment worldview that saw man, God and Earth in somewhat mystic entanglement. The late Chinese scientist Qian Xuesen argued the world was made up of “open giant complex systems” operating within larger open giant complex systems. Human beings themselves are open giant complex systems — every brain has billions of neurons connected to each other through trillions of pathways — continually exchanging and processing information with other humans and the environment. Life is much more complex, dynamic and uncertain than we once assumed.

To describe this dynamic, complex and uncertain systemic whole, we need to evolve trans-disciplinary thinking that integrates the natural, social, biological sciences and arts by transcending disciplinary boundaries. Qian concluded that the only way to describe such systemic complexity and uncertainty is to integrate quantitative with qualitative narratives, exactly what the Nobel Laureate Robert Shiller advocates for in “Narrative Economics.”…(More)”.

Household Financial Transaction Data


Paper by Scott R. Baker & Lorenz Kueng: “The growth of the availability and use of detailed household financial transaction microdata has dramatically expanded the ability of researchers to understand both household decision-making as well as aggregate fluctuations across a wide range of fields. This class of transaction data is derived from a myriad of sources including financial institutions, FinTech apps, and payment intermediaries. We review how these detailed data have been utilized in finance and economics research and the benefits they enable beyond more traditional measures of income, spending, and wealth. We discuss the future potential for this flexible class of data in firm-focused research, real-time policy analysis, and macro statistics….(More)”.

Could Trade Agreements Help Address the Wicked Problem of Cross-Border Disinformation?


Essay by Susan Ariel Aaronson: “Whether produced domestically or internationally, disinformation is a “wicked” problem that has global impacts. Although trade agreements contain measures that address cross-border disinformation, domestically created disinformation remains out of their reach. This paper looks at how policy makers can use trade agreements to mitigate disinformation and spam while implementing financial and trade sanctions against entities and countries that engage in disseminating cross-border disinformation. Developed and developing countries will need to work together to solve this global problem….(More)”.