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August 7, 2018

One of the main characteristics of the last few years is the increasing availability of statistical information on many aspects of individual decisions and participation to economic and financial life. This has become a boon to statisticians as the basis of data-based inference, estimation of models and forecasting has been, since the advent of statistical tools that more data (more evidence) is better than less data.

Firms that harness the potential of large datasets are more at ease to evaluate the relevance of their policy decisions, the risks they incur and their consequences.

Yet, this is not so simple, an argument showing how increasing data availability does not lead to better statistical decision making can be traced to the work of Benoît Mandelbrot (e.g....

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