Can Google Econometrics Predict Unemployment? Evidence From Spain
Economics Letters, vol. 170C, págs. 42-45. I.S.S.N.: 0165-1765., 2018
Posted: 18 Jun 2019
Date Written: 2018
Abstract
The aim of the paper is to analyze the ability of internet activity, what has been called Google econometrics, to predict unemployment in Spain. We include a new predictor for Spanish unemployment based on internet information provided by Google Trends. Using monthly data from January 2004 to November 2017 we found evidence of a high correlation between internet queries and unemployment. Besides that, the inclusion of internet activity enhances model’s prediction performance.
Keywords: Google econometrics, Unemployment, Spain, Forecasting
JEL Classification: E24, E27, J64, G17, C53
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