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Gonzalez-Garcia, J and Pastor, G (2009)

Benfordís Law and Macroeconomic Data Quality

International Monetary Fund Working Paper WP/09/10, Statistics Department, January 2009.

ISSN/ISBN: Not available at this time. DOI: Not available at this time.

Abstract: This paper examines the usefulness of testing the conformity of macroeconomic data with Benfordís law as indicator of data quality. Most of the macroeconomic data series tested conform with Benfordís law. However, questions emerge on the reliability of such tests as indicators of data quality once conformity with Benfordís law is contrasted with the data quality ratings included in the data module of the Reports on the Observance of Standards and Codes (data ROSCs). Furthermore, the analysis shows that rejection of Benfordís law may be unrelated to the quality of statistics, and instead may result from marked structural shifts in the data series. Hence, nonconformity with Benfordís law should not be interpreted as a reliable indication of poor quality in macroeconomic data.

Not available at this time.

Reference Type: Preprint

Subject Area(s): Economics