Optimizing the Use of Micro-Data: An Overview of the Issues

Abstract

New capacities to collect and integrate data offer expanded potential for scientists and policy-makers to understand factors contributing to key national priorities. However, two substantial challenges face collectors and producers of economic data as a result of this increased capacity. The first is how can the information derived from vast streams of data on human beings be used while protecting confidentiality? The second is the essence of good science: how can society best provide and promote access to rich and sensitive data so that empirical results can be generalized and replicated? This paper begins by discussing current confidentiality protection techniques accompanied by illustrations of some consequences for the typical type of analyses performed by economists. It then describes the challenges that are emerging as a result of technological advances, and develops a simple economic framework. The paper concludes with a suggested research agenda.

Keywords: Confidentiality, micro-data access, cyberinfrastructure

JEL Classification: C00, D00