Recent Big Data and Machine learning applications in economics

Abstract

This work illustrates three recent important studies related to Big Data and Machine Learning methods in economics and econometrics. The growing interest for handling Big Data in different economic topics brought economists to study the advantages and limits of Machine Learning methods.

Some scholars show how standard econometrics methods are still valid even with Big Data. Others instead illustrate how possible combinations of Machine Learning methods and econometrics techniques can be helpful in a high-dimensional framework. In particular, text mining and forecasting in data-rich environments research cannot escape, at least partially, the usage of Machine Learning methodologies.

However, the debate over the real capacities of these new methods to solve problems such as causal inference is still open. Finally, the new methods are imposing new reflections also on the current teaching programs in Economics and Business all over the world.