Panel study

Panel research is a statistical method widely used in the social sciences , epidemiology and econometrics , which deals with two dimensions (cross sectional / times series) panel data . ^[1] Data is collected over time from the same groups of people or individuals and then regression is carried out in these two dimensions. Multivariate analysis is an econometric method in which data is collected in more than two dimensions (i.e., in addition to time and individuals, as in our case, a third, fourth, etc. dimension is added). ^[2]

A typical regression panel study model is represented by the formula $y_{it}=a+bx_{it}+\epsilon _{it}$ ${\ displaystyle y_ {it} = a + bx_ {it} + \ epsilon _ {it}}$ $y _ {{it}} = a + bx _ {{it}} + \ epsilon _ {{it}}$ where y is a dependent variable , x is an independent variable , a and b are coefficients, i and t are indices of individuals and time. Error $\epsilon _{it}$ ${\ displaystyle \ epsilon _ {it}}$ $\ epsilon _ {{it}}$ very important in this analysis. The assumptions about the error determine whether we mean the effects fixed by us or random effects. Looking at a fixed effects model, $\epsilon _{it}$ ${\ displaystyle \ epsilon _ {it}}$ $\ epsilon _ {{it}}$ it is supposed to vary by chance in indices $i$ ${\ displaystyle i}$ $i$ or $t$ ${\ displaystyle t}$ $t$ making the model of fixed effects an analog of the model of dummy variables of one dimension. In a random effects model, $\epsilon _{it}$ ${\ displaystyle \ epsilon _ {it}}$ $\ epsilon _ {{it}}$ supposed to vary randomly by indices $i$ ${\ displaystyle i}$ $i$ or $t$ ${\ displaystyle t}$ $t$ requiring special processing in the error dispersion matrix. ^[3]

Panel research has three independent approaches:

Independent research in general;

Random effects models ;
Models of fiscal effects .

The choice between these methods depends on the object of our study and the problems regarding the totality of external factors explaining the variables.

General independent research

Position: There are no unique attributes for individuals with which measurements are taken, and there is no universal factor regarding the measurement of time.

Fixed Effect Models

Position: There are no unique attributes in individuals that are not the result of random changes and do not vary over time. Suitable if you want to conclude only tested individuals. Known as the "Least Squares Dummy Variable Model" (LSDVM)

Random Effect Models

Position: There are unique constants of individuals that are the result of random changes and are not associated with an individual regression. This model is suitable if you need to conclude about the whole population, and not a sample of the tested individuals.

Notes

↑ Maddala, GS Introduction to Econometrics. - Third. - New York: Wiley, 2001 .-- ISBN 0-471-49728-2 .
↑ Davies, A .; Lahiri, K. A New Framework for Testing Rationality and Measuring Aggregate Shocks Using Panel Data (Eng.) // Journal of Econometrics : journal. - 1995. - Vol. 68 , no. 1 . - P. 205—227 . - DOI : 10.1016 / 0304-4076 (94) 01649-K .
↑ Analysis of Panels and Limited Dependent Variable Models. - Cambridge: Cambridge University Press, 1999. - ISBN 0-521-63169-6 .

[1] Maddala, GS Introduction to Econometrics. - Third. - New York: Wiley, 2001 .-- ISBN 0-471-49728-2 .

[2] Davies, A .; Lahiri, K. A New Framework for Testing Rationality and Measuring Aggregate Shocks Using Panel Data (Eng.) // Journal of Econometrics : journal. - 1995. - Vol. 68 , no. 1 . - P. 205—227 . - DOI : 10.1016 / 0304-4076 (94) 01649-K .

[3] Analysis of Panels and Limited Dependent Variable Models. - Cambridge: Cambridge University Press, 1999. - ISBN 0-521-63169-6 .

Panel study

General independent research

Fixed Effect Models

Random Effect Models

See also

Notes

More articles: