IDEAS home Printed from https://ideas.repec.org/p/hka/wpaper/2024-008.html
   My bibliography  Save this paper

Potential Value of Data and Free Access to Data

Author

Listed:
  • Amos Golan

    (American University and Santa Fe Institute)

  • Spiro Stefanou

    (United States Department of Agriculture)

Abstract

In this study we develop measures of the potential value of information with an emphasis on observed information – data. Though value is a relative concept, developing approximate and applicable measures is essential. Such a measure (or set of measures) allows us to evaluate the potential value of public and privately available datasets, and the value of accessing each. There are several benefits to having such measures. First, providers of data can perform a cost-benefit analysis. Second, policy makers can better determine the benefits of different data when deciding whether to invest in its collection, production and release. The proposed measures are derived from information-theoretic principles as well as other statistics, in conjunction with relative measures based on semantic arguments. These measures are functions of attributes that can be aggregated into three basic blocks: (i) data reliability, integrity and accuracy, (ii) data quality, and (iii) potential value. We provide detailed empirical examples applying these measures to three data sets, each of which is different in context, size and complexity.

Suggested Citation

  • Amos Golan & Spiro Stefanou, 2024. "Potential Value of Data and Free Access to Data," Working Papers 2024-008, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2024-008
    Note: MIP
    as

    Download full text from publisher

    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Golan_Stefanou_2024_potential-value-free-access-data.pdf
    File Function: First version, December 28, 2023
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    2. Gould, John P., 1974. "Risk, stochastic preference, and the value of information," Journal of Economic Theory, Elsevier, vol. 8(1), pages 64-84, May.
    3. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    4. Aatto J. Repo, 1989. "The value of information: Approaches in economics, accounting, and management science," Journal of the American Society for Information Science, Association for Information Science & Technology, vol. 40(2), pages 68-85, March.
    5. Davidson, Marc D., 2013. "On the relation between ecosystem services, intrinsic value, existence value and economic valuation," Ecological Economics, Elsevier, vol. 95(C), pages 171-177.
    6. Brookshire, David S, et al, 1982. "Valuing Public Goods: A Comparison of Survey and Hedonic Approaches," American Economic Review, American Economic Association, vol. 72(1), pages 165-177, March.
    7. Richard T. Carson, 2012. "Contingent Valuation: A Practical Alternative When Prices Aren't Available," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 27-42, Fall.
    8. S. V. Ciriacy-Wantrup, 1947. "Capital Returns from Soil-Conservation Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4_Part_II), pages 1181-1196.
    9. Lanoie, Paul & Pedro, Carmen & Latour, Robert, 1995. "The Value of a Statistical Life: A Comparison of Two Approaches," Journal of Risk and Uncertainty, Springer, vol. 10(3), pages 235-257, May.
    10. Freeman, Richard B. & Yang, Buyuan & Zhang, Baitao, 2023. "Data deepening and nonbalanced economic growth," Journal of Macroeconomics, Elsevier, vol. 75(C).
    11. Ellen Hughes-Cromwick & Julia Coronado, 2019. "The Value of US Government Data to US Business Decisions," Journal of Economic Perspectives, American Economic Association, vol. 33(1), pages 131-146, Winter.
    12. repec:reg:rpubli:282 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    2. Tonin, Stefania, 2018. "Citizens’ perspectives on marine protected areas as a governance strategy to effectively preserve marine ecosystem services and biodiversity," Ecosystem Services, Elsevier, vol. 34(PB), pages 189-200.
    3. Catherine L. Kling & Daniel J. Phaneuf & Jinhua Zhao, 2012. "From Exxon to BP: Has Some Number Become Better Than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 3-26, Fall.
    4. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    5. Grüner, Hans Peter & Muller, Daniel, 2016. "Measuring political information rents: Evidence from the European agricultural reform," European Journal of Political Economy, Elsevier, vol. 43(C), pages 107-126.
    6. Mikael Svensson, 2009. "Precautionary behavior and willingness to pay for a mortality risk reduction: Searching for the expected relationship," Journal of Risk and Uncertainty, Springer, vol. 39(1), pages 65-85, August.
    7. Henrik Andersson & Nicolas Treich, 2011. "The Value of a Statistical Life," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 17, Edward Elgar Publishing.
    8. Richard Epstein, 2003. "The Regrettable Necessity of Contingent Valuation," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 259-274, November.
    9. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    10. Cook, David & Davíðsdóttir, Brynhildur & Kristófersson, Daði Már, 2016. "Energy projects in Iceland – Advancing the case for the use of economic valuation techniques to evaluate environmental impacts," Energy Policy, Elsevier, vol. 94(C), pages 104-113.
    11. Ikuho Kochi & Bryan Hubbell & Randall Kramer, 2006. "An Empirical Bayes Approach to Combining and Comparing Estimates of the Value of a Statistical Life for Environmental Policy Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(3), pages 385-406, July.
    12. Caffey, Rex H. & Wang, Hua & Petrolia, Daniel R., 2014. "Trajectory economics: Assessing the flow of ecosystem services from coastal restoration," Ecological Economics, Elsevier, vol. 100(C), pages 74-84.
    13. John C. Whitehead, 2024. "They doth protest too much, methinks: Reply to “Reply to Whitehead”," Working Papers 24-04, Department of Economics, Appalachian State University.
    14. Timothy C. Haab & Matthew G. Interis & Daniel R. Petrolia & John C. Whitehead, 2013. "From Hopeless to Curious? Thoughts on Hausman's 'Dubious to Hopeless' Critique of Contingent Valuation," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(4), pages 593-612.
    15. Banzhaf, H. Spencer, 2016. "Constructing markets: environmental economics and the contingent valuation controversy," MPRA Paper 78814, University Library of Munich, Germany.
    16. Floress, Kristin & Reimer, Adam & Thompson, Aaron & Burbach, Mark & Knutson, Cody & Prokopy, Linda & Ribaudo, Marc & Ulrich-Schad, Jessica, 2018. "Measuring farmer conservation behaviors: Challenges and best practices," Land Use Policy, Elsevier, vol. 70(C), pages 414-418.
    17. Whitehead, John C., 2016. "Plausible responsiveness to scope in contingent valuation," Ecological Economics, Elsevier, vol. 128(C), pages 17-22.
    18. Nicole Maestas & Kathleen J. Mullen & David Powell & Till von Wachter & Jeffrey B. Wenger, 2023. "The Value of Working Conditions in the United States and the Implications for the Structure of Wages," American Economic Review, American Economic Association, vol. 113(7), pages 2007-2047, July.
    19. Kitessa, R.J., 2018. "On the design and implementation of environmental conservation mechanisms : Evidence from field experiments," Other publications TiSEM cda8497d-6dcf-4092-b815-1, Tilburg University, School of Economics and Management.
    20. Amoah, Anthony & Ferrini, Silvia & Schaafsma, Marije, 2019. "Electricity outages in Ghana: Are contingent valuation estimates valid?," Energy Policy, Elsevier, vol. 135(C).

    More about this item

    Keywords

    benford's law; compressibility; condition number; mutual information; potential value; relative entropy; Shannon entropy; simple statistics; value;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hka:wpaper:2024-008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jennifer Pachon (email available below). General contact details of provider: https://edirc.repec.org/data/mfichus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.