Researchers at the University of Chicago proposed a new way to estimate GDP by analyzing night lights in satellite photos, the Wall Street Journal reported.
According to Dr. Luis Martinez at the University of Chicago, analyzing the intensity of nighttime light was a reliable way to gauge the country’s real GDP level, as it directly correlated with the country’s level of economic development.
As countries develop their economies, more buildings and transport infrastructure are built, increasing the visible night lights recorded by satellites. Dr. Martinez claimed that changes in the intensity of electric lights at night could supplement existing economic data and help uncover the discrepancy between the real state of the economy and the official figures published by governments.
An analysis of nighttime lights by the UoC indicated there was a 35% discrepancy between estimated and official economic data published by autocratic countries, such as Russia, Kazakhstan, Qatar, and others.
