Panel Data I & II
(Fall 2010)
Lecture 15
Prof: Seyhan Erden Arkonac, PhD
1

This
** preview**
has intentionally

**sections.**

*blurred***to view the full version.**

*Sign up*
2
Regression with Panel Data
A
panel dataset
contains observations on multiple entities
(individuals), where each entity is observed at two or more
points in time.
Hypothetical examples
:
Data on 420 California school districts in 1999
and
again
in 2000, for 840 observations total.
Data on 50 U.S. states, each state is observed in 3 years,
for a total of 150 observations.
Data on 1000 individuals, in four different months, for
4000 observations total.

3
Notation for panel data
A double subscript distinguishes entities (states) and time
periods (years)
i
= entity (state),
n
= number of entities,
so
i
= 1,…,
n
t
= time period (year),
T
= number of time periods
so
t
=1,…,
T
Data:
Suppose we have 1 regressor.
The data are:
(
X
it
,
Y
it
),
i
= 1,…,
n
,
t
= 1,…,
T

This
** preview**
has intentionally

**sections.**

*blurred***to view the full version.**

*Sign up*