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Google Econometrics and Unemployment Forecasting

Author

Listed:
  • Nikos Askitas
  • Klaus F. Zimmermann

Abstract

The current economic crisis requires fast information to predict economic behavior early, which is difficult at times of structural changes. This paper suggests an innovative new method of using data on internet activity for that purpose. It demonstrates strong correlations between keyword searches and unemployment rates using monthly German data and exhibits a strong potential for the method used.

Suggested Citation

  • Nikos Askitas & Klaus F. Zimmermann, 2009. "Google Econometrics and Unemployment Forecasting," RatSWD Research Notes 41, German Data Forum (RatSWD).
    • Handle: RePEc:rsw:rswrns:rswrns41
    as

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    File URL: http://www.ratswd.de/download/RatSWD_RN_2009/RatSWD_RN_41.pdf
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    References listed on IDEAS

    as
    1. Amelie Constant & Klaus F. Zimmermann, 2008. "Im Angesicht der Krise: US-Präsidentschaftswahlen in transnationaler Sicht," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 75(44), pages 688-701.
    2. Jeremy Ginsberg & Matthew H. Mohebbi & Rajan S. Patel & Lynnette Brammer & Mark S. Smolinski & Larry Brilliant, 2009. "Detecting influenza epidemics using search engine query data," Nature, Nature, vol. 457(7232), pages 1012-1014, February.
    3. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Google; internet; keyword search; search engine; unemployment; predictions; time-series analysis;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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