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Panel Data Analysis - Advantages and Challenges

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  • Cheng Hsiao

Abstract

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.

Suggested Citation

  • Cheng Hsiao, 2006. "Panel Data Analysis - Advantages and Challenges," IEPR Working Papers 06.49, Institute of Economic Policy Research (IEPR).
    • Handle: RePEc:scp:wpaper:06-49
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    Keywords

    Panel data; Longitudinal data; Unobserved heterogeneity; Random effects; Fixed effects;
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