Panel analysis

Panel (data) analysis is an econometric method in which data are first collected over time and over individuals and then a regression is run over these two dimensions. Multidimensional analysis is an econometric method in which data are collected over more than two dimensions (typically, time, individuals, and some third dimension).

Related Topics:
Econometric - Regression - Multidimensional analysis

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A common panel data regression model looks like y_{it}=a+bx_{it}+epsilon_{it}, where y is the dependent variable, x is the independent variable, a and b are coefficients, i and t are indices for individuals and time. The error epsilon_{it} is very important in this analysis. Assumptions about the error term determine whether we speak of fixed effects or random effects.

Related Topics:
Panel data - Dependent variable - Independent variable - Indices - Fixed effects - Random effects

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