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Google Econometrics and Unemployment Forecasting

26 Pages Posted: 2 Sep 2009  

Nikos Askitas

IZA Institute of Labor Economics

Klaus F. Zimmermann

Harvard University; German Institute for Economic Research (DIW Berlin); University of Bonn; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 3 versions of this paper

Date Written: May 1, 2009

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.

Keywords: Google, internet, keyword search, search engine, unemployment, predictions, time series analysis

JEL Classification: C22, C82, E17, E24, E37

Suggested Citation

Askitas, Nikos and Zimmermann, Klaus F., Google Econometrics and Unemployment Forecasting (May 1, 2009). DIW Berlin Discussion Paper No. 899. Available at SSRN: https://ssrn.com/abstract=1465341 or http://dx.doi.org/10.2139/ssrn.1465341

Nikos Askitas (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 3894 525 (Phone)
+49 228 3894 510 (Fax)

HOME PAGE: http://www.iza.org/home/askitas

Klaus F. Zimmermann

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

German Institute for Economic Research (DIW Berlin)

Mohrenstra├če 58
Berlin, 10117
Germany

University of Bonn

Postfach 2220
Bonn, D-53012
Germany

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

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