Mapping the disaggregated economy in real-time: Using granular payment network data to complement national accounts

Fuente: arXiv
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Main Author: Hötte, Kerstin
Format: Preprint
Published: 2024
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author Hötte, Kerstin
author_facet Hötte, Kerstin
contents In an era of rapid change, timely and disaggregated economic insights are crucial for effective policymaking. This study explores the potential of real-time payment data to complement traditional economic measurement. Using anonmysed UK business payments from 2015-2023, we analysed inter-industry financial flows at a granular 5-digit SIC level and compared them systematically with established economic indicators such as GDP and input-output tables (IOTs). Our findings show strong correlations with GDP and qualitative consistency with official IOTs, highlighting the value of the novel high-frequency data for real-time economic monitoring. We also benchmarked network statistics at the 5-digit level, showing how industry-specific payment structures align with stylised facts from the empirical economic network literature. While outlining methodological and interpretative challenges, we discuss the integration of such bottom-up data into national accounts. This work contributes to ongoing efforts to advance economic measurement and offers additional tools for tracking economic dynamics in real time.
format Preprint
id arxiv_https___arxiv_org_abs_2407_14776
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Mapping the disaggregated economy in real-time: Using granular payment network data to complement national accounts
Hötte, Kerstin
General Economics
Economics
In an era of rapid change, timely and disaggregated economic insights are crucial for effective policymaking. This study explores the potential of real-time payment data to complement traditional economic measurement. Using anonmysed UK business payments from 2015-2023, we analysed inter-industry financial flows at a granular 5-digit SIC level and compared them systematically with established economic indicators such as GDP and input-output tables (IOTs). Our findings show strong correlations with GDP and qualitative consistency with official IOTs, highlighting the value of the novel high-frequency data for real-time economic monitoring. We also benchmarked network statistics at the 5-digit level, showing how industry-specific payment structures align with stylised facts from the empirical economic network literature. While outlining methodological and interpretative challenges, we discuss the integration of such bottom-up data into national accounts. This work contributes to ongoing efforts to advance economic measurement and offers additional tools for tracking economic dynamics in real time.
title Mapping the disaggregated economy in real-time: Using granular payment network data to complement national accounts
topic General Economics
Economics
url https://arxiv.org/abs/2407.14776