Computer Operators and Software Engineers at Data Resources Inc.

Abstract

This article illustrates how computers and software were pivotal for the commercial success of Data Resources Inc. (DRI), one of the main econometric private companies in the US during the 1970s and 1980s. DRI was established in 1968 and it was directed until 1984 by Harvard economist Otto E. Eckstein. Relying on his academic and government networks, Eckstein was able to build a large-scale macroeconometric model for DRI, which produced economic forecasts sold to businesses and the government. In this article, we highlight how the computer infrastructure at DRI was organized to perform macroeconometric modeling, as well as many other commercial activities related to economic analysis and econometrics. We argue that DRI is a crucial case study in the history of large-scale macroeconometric modeling because of its distinctive use of computer tools, including notably the time-sharing technology, and its development of new software for economists. These computer-related aspects of DRI practices are documented through semi-directed interviews with Peter White (a former computer operator and software engineer at DRI), as well as a few other economists who were directly or indirectly involved with DRI’s activities.

Keywords

• history of macroeconomics
• large-scale macroeconometric modeling
• computerization of economics
• Eckstein (Otto E.)
• Data Resources Inc. (DRI)