Panel Data Analysis—Advantages and Challenges
Cheng Hsiao
Test (2007) 16: 1–22
#002076 20131014 (published)
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.
Keywords: Panel data,Longitudinal data,Unobserved heterogeneity,Random effects,Fixed effects

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