Panel Data Analysis — Advantages and Challenges
Cheng Hsiao
Department of Economics, USC,U.S. and WISE,China
12/18/2010 9:30:39 AM
We explain the proliferation of panel data studies in terms of (i) data availability, (ii)the more heightened capacity for modeling the complexity of human behavior than a single cross-section or time series data can possibly allow, and (iii) challenging methodology. Advantages and issues of panel data modeling are also discussed.
Panel data; Longitudinal data; Unobserved heterogeneity; Random effects; Fixed effects