MANAGEMENT UPDATE.
A DECLINE IN QUALITY DATA
Data is, increasingly, the language of government. Several months ago, the âOn the Evidenceâ podcast from Mathematica was particularly worrisome.
The guest was Mark Zandi, chief economist at Moodyâs Analytics; a man whose reputation for the careful use of data is widespread. But in his conversation with Paul Decker, Mathematicaâs president, and CEO, he voiced concerns that thereâs been an erosion of some of the data that is fundamental for his economic analyses, as well as to critical government decision-making.
One of his greatest concerns is that âthe quality of the data weâre using is starting to erode because a lot of it is based on surveys and survey response rates are way down across the board.â
He added that âThere are concerns around privacy, cyber issues, but for whatever reason, the response rates are way down and thatâs beginning to affect the data to a significant degree.â

This isnât a trivial issue, said Zandi indicating that itâs âa real problem â and this is going to become a bigger issue going forward,â and not just for government surveys, but for corporate surveys that chronicle individual behavior. âIâm sure some of it is survey fatigue,â he said. âEverything I buy or every plane I get on or every car I rent; I get a survey saying âHow did I do. . .?ââ
As an example of the potential problem, he pointed to frequent revisions in employment numbers â partly due to low response rates and lagging reports because âbusinesses are responding later and later to whatâs going on.â
This isnât just a US problem. In fact, it may be more visible elsewhere. âThe British canât even collect good employment rate data, and if you canât have a good fix on unemployment, how do you accept monetary policy? So thatâs a real problem for them, and thatâs the direction weâre headed here in the United States if we donât provide more funding and try to figure this out.â
As Zandi pointed out, funding for government agencies that collect, clean and disseminate data hasnât kept up and in some ways has gone backwards. âI think thatâs a really serious problem. We canât make good, informed decisions; we canât do the kind of work we need to do to make good policy unless we have good underlying economic information and data . . .
âIf I were king for the day and I could devote resources to one thing, that would be it. Letâs go make our data sources more resilient, better, more comprehensive, more timely.â
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