Panel Data Analysis


Panel data are a particular type of longitudinal data. Longitudinal data consist of repeated observations over time for the same unit of analysis. This entry discusses practicalities of analysing longitudinal data, particularly individual and household panel data. After a brief discussion of the most important features of panel data and their advantages, this entry discusses issues such as missing data and representativeness of the sample over time. This is followed by a brief overview of the file structure of the most commonly used individual and household panels and the main steps necessary for data preparation.

The most commonly used panel data estimators for the case of continuous dependent variables are then briefly discussed, as well as how to model individual unobserved heterogeneity and how to select the most appropriate estimator. This is followed by an introduction to estimators for limited dependent variables. Finally, the entry discusses missing data, survey weights, and issues arising when analysing macro instead of individual panels.

The focus is on the intuition behind the different concepts and techniques.

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