Survey of Economic Research using Alternative Data

Abstract

This paper provides a survey of economic research using alternative data in Japan. The use of alternative data in economic research has increased signi.cantly since the outbreak of COVID-19 in early 2020s. A large number of studies have been conducted in a wide range of areas, including i) nowcasting, ii) analysis of changes in economic behavior and in economic structure, and iii) measurement and evaluation of policy e.ects. These stud-ies have proved that alternative data are particularly useful when economies exhibit high volatilities. More recently, the .eld of research is expanding toward topics not necessarily related to COVID-19. These developments of research, however, have also revealed caveats and challenges from the point of statistical reliability, when using alternative data. These issues include insu.cient knowledge about basic characteristics of data and its relationship with o.cial statistics, and degree of adequacy of sampling method and sample design.