yaffee_primer - A Primer for Panel Data Analysis Search...

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A Primer for Panel Data Analysis Search This Site Browse the table of contents, or select an option from this menu: Print this article (xxxK PDF) A Primer for Panel Data Analysis By Robert Yaffee Panel data analysis is an increasingly popular form of longitudinal data analysis among social and behavioral science researchers. A panel is a cross-section or group of people who are surveyed periodically over a given time span. In this article, we will consider a small sample of panel data analytic applications in the social sciences. Then we will address the data structure for panel analysis. Principal models of panel analysis will be summarized, along with some of their relative advantages and disadvantages. We will discuss a test to determine whether to use fixed or random effects models. After a synopsis of methods of estimations tailored to different situations, we will conclude with a brief discussion of popular software capable of performing panel analysis. Some Applications of Panel Analysis Panel data analysis is a method of studying a particular subject within multiple sites, periodically observed over a defined time frame. Within the social sciences, panel analysis has enabled researchers to undertake longitudinal analyses in a wide variety of fields. In economics, panel data analysis is used to study the behavior of firms and wages of people over time. In political science, it is used to study political behavior of parties and organizations over time. It is used in psychology, sociology, and health research to study characteristics of groups of people followed over time. In educational research, researchers study classes of students or graduates over time. With repeated observations of enough cross-sections, panel analysis permits the researcher to study the dynamics of change with short time series. The combination of time series with cross-sections can enhance the quality and quantity of data in ways that would be impossible using only one of these two dimensions (Gujarati, 638). Panel analysis can provide a rich and powerful study of a set of people, if one http://www.nyu.edu/its/pubs/connect/fall03/yaffee_primer.html (1 of 11)11/5/2003 10:09:21 AM
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A Primer for Panel Data Analysis is willing to consider both the space and time dimension of the data. The Panel Approach: An Overview Panel data analysis endows regression analysis with both a spatial and temporal dimension. The spatial dimension pertains to a set of cross-sectional units of observation. These could be countries, states, counties, firms, commodities, groups of people, or even individuals. The temporal dimension pertains to periodic observations of a set of variables characterizing these cross-sectional units over a particular time span. An example of a panel data set is a collection of three countries for which there are
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This note was uploaded on 05/24/2011 for the course ECON 488 taught by Professor Brunton during the Spring '11 term at James Madison University.

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yaffee_primer - A Primer for Panel Data Analysis Search...

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