Economic Data and Evidence-Based Policymaking
The importance of evidence-based policymaking (EBPM) has been increasingly recognized. We, however, are subject to the constraint of economic data availability to make policy more evidence based. In this project, we not only conduct research on evidence-based policy evaluation but also develop databases for EBPM. Here are the five agendas. First, we develop and use real-time data, which are sets of information at the time policy decisions are made, to evaluate economic policies. Second, as well as developing economic indicators that can be used to judge the current business climate early and accurately, we nowcast GDP, in other words, we compute a running estimate of GDP by using available data. Third, we grasp economic trends at an early stage that cannot be done by government statistics. In so doing, we study “alternative data”—non-traditional data generated by the business activities of private firms. Fourth, we examine and evaluate the government’s reforms of national statistics and make recommendations. Fifth, we forecast the medium- to long-term macroeconomic outlook for the Japanese economy by working with a group of professional forecasters.