Seminar（Dept. of Trade Economics）

Theme：Data Quality, Data Property and Economic Growth

Speaker：Mengbo Zhang (School of Finance, Shanghai University of Finance and Economics)

Time：2021-11-17 16:00

Address：Tencent Meeting

Language：Chinese/English

Venue: Tencent Meeting https://meeting.tencent.com/dm/FrnQzXb7QJ4o 

Meeting ID：739 982 816

Password：1117

Abstract：

The nonrivalry of data is constrained by data quality: Low-quality data may weaken the scale effect of data on promoting economic growth and improving social welfare. We build an endogenous growth model to study the role of data quality and data property allocation on economic growth and social welfare. Consumers generate raw data via consumption and share them with firms at the cost of privacy concerns. Firms hire labor to improve the data quality and use the processed data in goods production. We find that when the market size is large, improving data quality is more helpful than raw data accumulation to increase output. Moreover, when the degree of returns to scale in data processing is sufficiently high, giving data property rights to firms can generate allocations closer to optimal. The optimal allocation is achieved in equilibrium by taxing data processing and subsidizing data selling.