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Measuring the economic value of data (Nguyen & Paczos)

Measuring the economic value of data by David Nguyen, Marta Paczos published by VOX EU (10/2020).

As the amount and variety of data collected by companies has increased in recent decades, data have become an essential resource. This column sets out a framework for understanding how businesses monetise data – distinguishing between data-enabled businesses that would not exist without access to large amounts of data and analytics, and data-enhanced businesses that exploit data to coordinate pre-existing business operations better. Allowing the increasing use of data to act as an unmeasured input in production handicaps key economic statistics – from output to productivity and beyond. 

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