Friday, June 28, 2013

Google predicts economic trends


A proof is that the Internet is a very useful thing and it can serve even in making a revolution, according to the Arab Spring and it's discovered another very important function, which is predicting economic trends!

Researchers in England Bank, Central Bank of the United Kingdom, found that Internet-specific search terms can suggest on how to move unemployment and property prices in the future. They have for several years comparing the frequency of certain words such as real estate agency, mortgage, unemployment in internet-searchers with the actual changes that were then followed in property prices and it turned out that the data can be very much useful in the design of economic policy.

The study authors claim that data on the frequency of terms in the Internet-tests can predict changes in the level of unemployment in the UK. The most striking result of this study was given by the term real estate agency, which proved to be quite faithfully follow changes in the average house price in the last eight years.

The researchers said that according to Google's database it was possible to predict the increase in unemployment since 2008. and falling real estate values. they also said that, for example, search words LCD TV or refrigerator gives much more immediate impression of what is happening in the economy rather than waiting for official information.

Information on the Internet-search is treated as an economic indicator that these economists argue that, with all faults, very timely, because they are available on a daily basis, and to potentially cover a large sample of respondents.

Unlike traditional research methods, in which the firms or individuals required to respond to the questionnaire, the information collected here as a byproduct of normal activities - surfing the World Wide Web. In this way they avoided situations in which the respondent does not wish to respond or deliberately give false answers.

Source:interestingtopics.net

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