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The world price of macro opacity: Through the lens of nighttime satellites

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  • Liu, Honglin
  • Liu, Qiao
  • Liu, Yufei

Abstract

This paper proposes a macro opacity measure from the perspective of macroeconomic data accuracy through the lens of nighttime satellites. Macro opacity varies with countries’ governance and culture, while higher macro opacity often relates to higher cost of capital.

Suggested Citation

  • Liu, Honglin & Liu, Qiao & Liu, Yufei, 2023. "The world price of macro opacity: Through the lens of nighttime satellites," Economics Letters, Elsevier, vol. 228(C).
    • Handle: RePEc:eee:ecolet:v:228:y:2023:i:c:s0165176523001829
    DOI: 10.1016/j.econlet.2023.111157
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    References listed on IDEAS

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    3. Djankov, Simeon & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2008. "The law and economics of self-dealing," Journal of Financial Economics, Elsevier, vol. 88(3), pages 430-465, June.
    4. Mukherjee, Abhiroop & Panayotov, George & Shon, Janghoon, 2021. "Eye in the sky: Private satellites and government macro data," Journal of Financial Economics, Elsevier, vol. 141(1), pages 234-254.
    5. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    6. Bhattacharya, Utpal & Daouk, Hazem & Welker, Michael, 2003. "The World Price of Earnings Opacity," Working Papers 127185, Cornell University, Department of Applied Economics and Management.
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    More about this item

    Keywords

    Macro opacity; Cost of capital; Night lights;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative

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