Use of panel data in applications of income dynamics
By using panel data, the paper aims to (1) describe changes in the income of households and to (2) present an econometric model for explaining short-term changes in income. The data are derived from the income distribution statistics compiled by the Central Statistical Office of Finland. The panel feature has been a part of the statistics since 1982. According to the results, the income of households varies considerably from year to year. The explanatory power of the econometric model was satisfactory. The income level of the previous year turned out to be the best regressor: the panel data show that income differences level out regardless of what cross-section data may indicate. The next best regressors turned out to be changes in the socio-economic status and the composition of the household. On the basis of the results, use of panel data can be recommended for research on income and on other applications ofeconomics. In the present study, the duration of the panel was only one year, which is why the application of the data is more limited than would be the case with longer panels. Long panels, on the other hand, suffer from a reduction in data due to nonresponse and overcoverage.
Volume (Year): 2 (1989)
Issue (Month): 1 (Spring)
|Contact details of provider:|| Web page: http://www.taloustieteellinenyhdistys.fi|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chamberlain, Gary, 1982. "Multivariate regression models for panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 5-46, January.
- Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
- Quigley, John M, 1987. "Interest Rate Variations, Mortgage Prepayments and Household Mobility," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 636-643, November.
- MaCurdy, Thomas E., 1982. "The use of time series processes to model the error structure of earnings in a longitudinal data analysis," Journal of Econometrics, Elsevier, vol. 18(1), pages 83-114, January.
When requesting a correction, please mention this item's handle: RePEc:fep:journl:v:2:y:1989:i:1:p:55-64. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Editorial Secretary)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.