Measuring Firm Activity from Outer Space

33 Pages Posted: 18 Apr 2022 Last revised: 28 Apr 2023

Date Written: April 2022

Abstract

To understand how global firm networks operate, we need consistent information on their activities, unbiased by their reporting choices. In this paper, we collect a novel dataset on the light that factories emit at night for a large sample of car manufacturing plants. We show that nightlight data can measure activity at such a granular level, using annual firm financial data and high-frequency data related to Covid-19 pandemic production shocks. We use this data to quantify the extent of misreported global operations of these car manufacturing firms and examine differences between sources of nightlight.

Suggested Citation

Bilicka, Katarzyna Anna and Seidel, André, Measuring Firm Activity from Outer Space (April 2022). NBER Working Paper No. w29945, Available at SSRN: https://ssrn.com/abstract=4086235

André Seidel

University of Bergen ( email )

Muséplassen 1
N-5008 Bergen, +47 55 58
Norway

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