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# cn7 - PANEL DATA(Ch 10 The recommended exercise questions...

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PANEL DATA (Ch. 10) The recommended exercise questions from the textbook: Chapter 10: All except (10.6), (10.10). [1] What are panel data? Panel data consists of the observations on the same n entities at two or more time periods T. If the data set contains observations on the variables X and Y, then the data are denoted ( , ), 1,..., 1,..., it it X Y i n and t T = = , where the first subscript, i, refers to the entity being observed, and the second subscript, t, refers to the date at which it is observed. Balanced panel Vs. unbalanced panel. • Balanced panel: Variables are observed for each entity and each time period. Unbalanced panel: Some missing data for at least one time period. We consider the analysis of balanced panel. But extension to unbalanced is straightforward. Panel-1

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[2] Revisiting Omitted Variables Biases Issue: Do alcohol taxes help decrease traffic deaths? Data: fatality.wf1 48 U.S. states (excluding Alaska and Hawaii): N = 48. 1982 -1988: T =7. fatality rate = # of traffic accident deaths per 10,000 people. beertax = tax per a case of beer (\$). Estimation results for the 1982 data: n FatalityRate = 2.01 + 0.15BeerTax (0.15) (0.13) Estimation results for the 1988 data: n FatalityRate = 1.86 + 0.44BeerTax (0.11) (0.13) Panel-2
Panel-3

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