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Data Science: Solution to Greek Crises?

It had been believed that Greece had struggled too much to meet the criteria for Euro entry. Official figures showing Greek deficit that were used to prove accession were found incorrect in 2004, and the authority continued to submit frequently revised statistics to the EU for the next decade. Data science could play a key role in protecting Greece. In 2011, Fact and Fiction in EU Governmental Economic Data (a research paper) used Benford’s Law up to a decade of economic data from 27 EU states. Benford’s Law states that in many naturally occurring collections of numbers the small digits occurs disproportionately often as leading significant digits. Benford’s Law was also used by financial auditors as a key to their fraud detection and the researchers tried to relate it to economic data. Researchers calculated the difference between the actual value and the expected value. After some research and analysis researchers found that Greece was the country with greatest deviation and they subject it to the effectiveness of Benford’s Law in determining the irregularities and manipulations in macroeconomic data. Now the question arises could data science and Benford’s Law let Greece to evade crises by keeping it away from Euro. The answer is no because the figures shown by Greece were hesitating. In fact it was Germany and France who broke the 3% budget deficit rule. Benford’s law might have helped, but the entry of Greece in Euro in fact was a political decision not economical. According to researchers, a little focus on Benford’s Law could help in recovering from such a devastating situation. Read more at: http://www.smartdatacollective.com/timoelliott/329137/could-data-science-have-saved-greece

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