# What is panel data?

Panel data are multi-dimension with time. Panel data contain phenomena obtained over time across firms or individuals.

Below is the example of Panel data

MRPP balanced panel: MRPP unbalanced panel:

The example above are two datasets with a panel structure. Individual characteristics (income, age, sex) are collected for different persons and years. In the left dataset, two persons (1, 2) are observed every year for three years (2016, 2017, 2018). In the right dataset, three persons, two times (person 1), three times (person 2), and one time (person 3), respectively, over three years; in particular.

#### 🦄A balanced panel

(e.g., the left-hand dataset above) is a dataset in which each panel member (i.e., person) is observed every year. Consequently, if a balanced panel contains N panel members and T periods, the number of observations (n) in the dataset is necessarily n = N×T.

#### 🦄 An unbalanced panel

(e.g., the right-hand dataset above) is a dataset in which at least one-panel member is not observed every period. Therefore, if an unbalanced panel contains N panel members and T periods, then the following strict inequality holds for the number of observations (n) in the dataset: n < N×T.

Both datasets above are structured in the long format, which is where one row holds one observation per time. Another way to structure panel data would be the wide format where one row represents one observational unit for all points in time (for the example, the full format would have only two (left model) or three (right example) rows of data with additional columns for each time-varying variable (income, age).

## Analysis

A panel has the form

### $X_{it}, i=1,...,N t=1,...,T$

How to write latex in html

<img src="http://latex.codecogs.com/svg.latex?1+sin(x)" border="0"/>

where {\displaystyle i} is the individual dimension and {\displaystyle t} is the time dimension. A general panel data regression model is written as {\displaystyle y_{it}=\alpha +\beta 'X_{it}+u_{it}.} Different assumptions can be made on the precise structure of this general model. Two important models are the fixed effects model and the random effects model.

Consider a generic panel data model:

{\displaystyle y_{it}=\alpha +\beta 'X_{it}+u_{it},}
{\displaystyle u_{it}=\mu _{i}+v_{it}.}

{\displaystyle \mu _{i}} are individual-specific, time-invariant effects (for example in a panel of countries this could include geography, climate etc.) which are fixed over time., whereas {\displaystyle v_{it}} is a time-varying random component.

If {\displaystyle \mu _{i}} is unobserved and correlated with at least one of the independent variables, then it will cause omitted variable bias in a standard OLS regression. However, panel data methods, such as the fixed effects estimator or the First-difference estimator can be used to control for it.

If {\displaystyle \mu _{i}} is not correlated with any of the independent variables, ordinary least squares linear regression methods can be used to yield unbiased and consistent estimates of the regression parameters. However, because {\displaystyle \mu _{i}} is fixed over time, it will induce serial correlation in the error term of the regression. This means that more efficient estimation techniques are available. Random effects is one such method: it is a special case of feasible generalized least squares which controls for the structure of the serial correlation induced by {\displaystyle \mu _{i}}.

### Dynamic panel data

Dynamic panel data describes the case where a lag of the dependent variable is used as regressor:

{\displaystyle y_{it}=\alpha +\beta 'X_{it}+\gamma y_{it-1}+u_{it},}

The presence of the lagged dependent variable violates strict exogeneity, that is, endogeneity may occur. The fixed effect estimator and the first differences estimator both rely on the assumption of strict exogeneity. Hence, if {\displaystyle u_{i}} is believed to be correlated with one of the independent variables, an alternative estimation technique must be used. Instrumental variables or GMM techniques are commonly used in this situation, such as the Arellano–Bond estimator.

### Implementation in STATA

#### 🦄 How to prepare your panel data in Stata

How to write latex in html

<img src="http://latex.codecogs.com/svg.latex?1+sin(x)" border="0"/>

Keyword:

panel data
panel data analysis
panel data in stata
panel data stata
panel data with stata
panel data regression
panel data set
panel data in r
panel data with r
panel data example
panel data vs time series
panel data econometrics
panel data models
panel data definition
panel data fixed effects
panel data regression stata
panel data econometrics with r
panel data analysis in r
panel data regression in r
panel data analysis stata
panel data wooldridge
panel data machine learning
panel data models with interactive fixed effects
panel data forecasting
panel data eviews
panel data in eviews
panel data meaning
panel data methods
panel data time series
panel data vs cross sectional data
panel data econometrics with r pdf
panel data book
panel data for dummies
econometric analysis of panel data 6th edition
panel data in econometrics
panel data analysis spss
panel data visualization
data panel 22068
data panel fusion 360
panel data conference 2019
panel data diagnostic tests
panel data tests
panel data logistic regression
panel data analysis pdf
panel data analysis using eviews pdf
panel data regression in spss
panel database
panel data in spss
panel data spss
panel data forecasting r
econometric analysis of panel data 4th edition
econometric analysis of panel data 5th edition
panel data approach
panel data assumptions
panel data baltagi
panel data cointegration
panel data correlation
panel data descriptive statistics stata
panel data econometrics in r the plm package
panel data equation
panel data estimation
panel data excel
panel data format
panel data graph
panel data graphs stata
panel data gretl
panel data hausman test
panel data heteroskedasticity test eviews
panel data heteroskedasticity test stata
panel data in excel
panel data in python
panel data interpretation
panel data marketing
panel data methodology
panel data multicollinearity
panel data pdf
panel data ppt
panel data princeton
panel data probit
panel data random effects
panel data regression in eviews
panel data regression in excel
panel data research
panel data sample
panel data sheet
panel data stationarity
panel data study
panel data techniques
panel data unit root
panel data unit root test
panel data using r
panel data using spss
panel data using stata
panel data video
panel data xls
baltagi panel data 4th edition
chamberlain panel data 1984
data panel 20029
data panel 30021
data panel 30034
data panel 37007-2
data panel dengan eviews 9
data panel eviews 7
data panel jquery
datapanel 240e
ge fanuc data panel 160
grafana table panel json data
import panel data eviews 7
import panel data eviews 9
japan panel data
jinko panel data sheet
julia panel data
jumpshot panel data
kalyan panel data
kantar panel data
kao panel-data cointegration test
panel data 101
panel data 2 periods
panel data 2005
panel data 2007
panel data 2019
panel data 2sls
panel data 2sls stata
panel data 2sls tests
panel data 3 dimensional
panel data 3 variables stata
panel data 3 years
panel data 5 year average
panel data allows you to
panel data analysis 13
panel data analysis in eviews 9
panel data analysis in stata 13
panel data analysis journal
panel data ar(1)
panel data balance
panel data balanced unbalanced
panel data basics
panel data benefits
panel data between estimator
panel data between within
panel data bootstrap
panel data causal inference
panel data classification
panel data clustered standard errors
panel data clustering
panel data collection
panel data correlation matrix
panel data cross sectional data
panel data deep learning
panel data define
panel data descriptive statistics
panel data descriptive statistics in r
panel data difference in difference
panel data dummy variables
panel data endogeneity
panel data eviews 10
panel data eviews 8
panel data eviews 9
panel data exam questions
panel data fixed and random effects
panel data fixed effects in r
panel data fixed effects model
panel data fixed effects stata
panel data forecasting python
panel data gls
panel data gmm
panel data goodness of fit
panel data granger causality test stata
panel data graph excel
panel data gravity model
panel data gravity models of international trade
panel data hausman test stata
panel data heterogeneity
panel data heteroskedasticity
panel data heteroskedasticity test r
panel data how many observations
panel data hsiao
panel data hypothesis testing
panel data in marketing
panel data instrumental variables
panel data jmp
panel data journal
panel data journal pdf
panel data k-means
panel data kaggle
panel data keras
panel data kernel regression
panel data kurtosis
panel data lag
panel data lecture notes
panel data limitations
panel data line graph stata
panel data linear regression
panel data logistic regression stata
panel data logit stata
panel data longitudinal data
panel data là gì
panel data matlab
panel data missing years
panel data model in r
panel data models ani katchova
panel data n t
panel data nedir
panel data neural network
panel data nielsen
panel data normality test
panel data normality test stata
panel data not normally distributed
panel data notation
panel data notes
panel data number of observations
panel data observations
panel data of individual wages
panel data ols
panel data ols assumptions
panel data ols regression stata
panel data ols stata
panel data on stata
panel data or time series
panel data outlier detection
panel data pandas
panel data pooled data
panel data pooled ols
panel data prediction
panel data propensity score matching
panel data python
panel data quantile regression
panel data quantile regression stata
panel data quantile regression with grouped fixed effects
panel data quantiles
panel data quarterly stata
panel data quartile
panel data questions
panel data quizlet
panel data regression equation
panel data regression python
panel data serial correlation
panel data stata 14
panel data stata 15
panel data stationarity test
panel data summary statistics stata
panel data t test
panel data table
panel data time fixed effects
panel data time trend
panel data toolbox matlab
panel data tutorial
panel data types
panel data uk
panel data unbalanced
panel data unbalanced stata
panel data unit root test eviews
panel data uses
panel data var
panel data variables
panel data variance decomposition
panel data versus time series
panel data viz
panel data vs pooled data
panel data wiki
panel data with dummy variables
panel data with fixed effects
panel data with missing values
panel data with two time periods
panel data within and between variation
panel data workshop
panel data xgboost
panel data xlstat
panel data xtgls
panel data xtivreg2
panel data xtlogit
panel data xtmixed
panel data xtreg
panel data xtset
panel data xtsum
panel data year dummies
panel data yearly
panel data youth unemployment
panel data zoo
s&l data panel 1
s&l data panel 3
stata panel data year dummy
waaree solar panel 325w data sheet
3sls panel data stata

Current rating: 5

## Popular Courses

### I am here for Stata

19Jul- 2015, by: Dimas Mukhlas

### Lound mind and thought

20Oct- 2019, by: Dimas Mukhlas

### Basic python for financial market analysis

20Aug- 2019, by: Dimas Mukhlas

### Python component - Numpy for financial analyis.

10Aug- 2019, by: Dimas Mukhlas

### Python component - General Pandas for financial analyis.

10Aug- 2019, by: Dimas Mukhlas

### Python component Matpotlib for visualization

10Aug- 2015, by: Dimas Mukhlas

More News »

Recent news

Recent news

Recent news

# What if Room Famous Paintings come to Life

Edited from the post of  EMMA TAGGART

#### Coronavirus memiliki asal mula dari alam

Recent news

Ilustrasi coronavirus (gambar stok).

Novel coronavirus SARS-CoV-2 yang muncul di kota Wuhan, Cina, tahun lalu dan sejak itu menyebabkan epidemi COVID-19 berskala besar dan menyebar ke lebih dari 70 negara lain adalah produk evolusi alami, menurut temuan yang dipublikasikan hari ini di jurnal Nature Medicine .

#### Coronavirus: Negara mana saja yang mengunci dirinya

Recent news

Polisi Prancis mengendalikan kendaraan di Ustaritz, Prancis barat daya, Kamis, 19 Maret 2020.   -   Copyright   AP Photo / Bob Edme

#### Creativity amid the Corona outbreak - WFH design

Recent news

Some have set up their office on their beds. Others have migrated to kitchen tables or their couches. Many are trying to figure out how to maintain some normalcy while sharing small spaces with partners or family members.
And in the absence of proper work-from-home infrastructure (like, you know, an actual desk), a lot of people are getting creative.

### The liquor cabinet desks

Emma Northcott, who is based in London, is using her liquor cabinet while she waits for an office that she ordered online to come in.
Patrick Gipson in New York had a similar idea.
They won't have to travel far for (virtual) happy hour.

Recent news

Lately

Recent news

More News »