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Private Funding of “Free” Data: A Theoretical Framework

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  • Rachel Soloveichik

Abstract

This paper illustrates the importance of free data with a back-of-the-envelope calculation. To start out, the paper reviews four previous case studies which together studied $1.8 trillion of free data creation in 2017 (Soloveichik 2023) (Soloveichik 2024) (Sveikauskas et al. 2023). This paper then uses those case studies, existing input-output tables and occupational employment to extrapolate that total private creation of free data in the United States was $6.6 trillion in 2017. In that same year, including free data in the economic statistics raises measured gross domestic product by more than 20 percent and raises measured household production by more than 100 percent.

Suggested Citation

  • Rachel Soloveichik, 2024. "Private Funding of “Free” Data: A Theoretical Framework," BEA Papers 0125, Bureau of Economic Analysis.
    • Handle: RePEc:bea:papers:0125
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    File URL: https://www.bea.gov/system/files/2024-04/BEA-WP2024-1b.pdf
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    References listed on IDEAS

    as
    1. Rachel Soloveichik, 2023. "Capitalizing Data: Case Studies of Tax Forms and Individual Credit Reports," BEA Papers 0116, Bureau of Economic Analysis.
    2. Mikko Leppämäki & Mikko Mustonen, 2009. "Skill Signalling with Product Market Externality," Economic Journal, Royal Economic Society, vol. 119(539), pages 1130-1142, July.
    3. Mark Aguiar & Erik Hurst, 2007. "Measuring Trends in Leisure: The Allocation of Time Over Five Decades," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 969-1006.
    4. Gang Liu & Barbara M. Fraumeni, 2020. "A Brief Introduction to Human Capital Measures," NBER Working Papers 27561, National Bureau of Economic Research, Inc.
    5. Liu, Gang & Fraumeni, Barbara M., 2020. "A Brief Introduction to Human Capital Measures," IZA Discussion Papers 13494, Institute of Labor Economics (IZA).
    6. Diane Coyle & Wendy Li, 2021. "The Data Economy: Market Size and Global Trade," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2021-09, Economic Statistics Centre of Excellence (ESCoE).
    7. Rachel Soloveichik, 2022. "Natural Resource Exploration as Intangible Investment," BEA Working Papers 0201, Bureau of Economic Analysis.
    8. Laurence C. Baker & M. Kate Bundorf & Daniel P. Kessler, 2015. "Expanding Patients' Property Rights in Their Medical Records," American Journal of Health Economics, MIT Press, vol. 1(1), pages 82-100, Winter.
    9. Laurence C. Baker & M. Kate Bundorf & Daniel P. Kessler, 2015. "Expanding Patients' Property Rights in Their Medical Records," American Journal of Health Economics, University of Chicago Press, vol. 1(1), pages 82-100, Winter.
    10. Mikko Leppämäki & Mikko Mustonen, 2009. "Skill Signalling with Product Market Externality," Economic Journal, Royal Economic Society, vol. 119(539), pages 1130-1142, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Rachel Soloveichik, 2024. "Studies on the Value of Data," BEA Papers 0124, Bureau of Economic Analysis.

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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