Endogenous Growth with Data Generated During Production

In this paper, we build a growth model using a new type of data for knowledge accumulation. This type of data can be viewed as a byproduct during the production process, therefore illustrating a new source of data supply, i.e., producer data. Labor will be employed for collecting and cleaning the data before they can be used, which we call them producer data; however, there are no privacy concerns as assumed in previous studies, which all focus on consumer data. We explore along the balanced growth path and find a higher growth rate of the economy than that can be derived when only using data from consumers---a result that we have not found in existing studies. Moreover, we study a generalized model using both types of data simultaneously, and find that our benchmark model is more like the case when the combination of data becomes full of elasticity, but they still differ in output levels. This new theoretical model has new and important implications for the data economy