Panel data analysis
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Panel data analysis is a statistical method used in social science and econometrics to analyze two-dimensional data collected over time for the same individuals. A regression is run over both the time and individual dimensions. There are three main models: pooled OLS which treats all data as one set without segregation; fixed effect which allows different intercepts for changes in cross-sectional units; and random effect which examines changes over time and units. Tests like Chow, Breusch-Pagan, and Hausman are used to determine the best model to use.
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Panel data analysis
- 2. statistical method,widely used in social science, epidemiology, and econometrics, which deals with two-dimensional (cross sectional/times series)panel data. The data are usually collected over time and over the same individuals and then a regression is run over these two dimensions.
- 3. • where yis the dependent variable, x is the independent variable, a and b are coefficients, i and t are indices for individuals and time.
- 4. Pooled OLS o Itconsiders data as one data set. o No segregation Fixed effect model o When we want different intercepts o Change in cross sectional units o No sampling is done Random effect Model o When we want to see changes in time and units
- 5. o Chow Test Ho:Pool is better than fixed Hi: fixed is better than pool o Breusch-Pagan test Pool is better than Random Effect Random is better than Pooled o Hausman test Random is better than fixed Fixed is better than random