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Panel Data

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PPGPortal > Home > Concept Dictionary > P, Q > Panel Data

Panel Data

Data consisting of observations on a series of individuals at several different points in time.

(Paul Grootendorst, PPG2010)


Panel data has several useful features. Among them are:

1.) In some cases, one can control for unobserved variables that may be correlated with covariates of interest. In this way, panel data can reduce bias and, by reducing variability in the error term, can improve precision.

2.) Covariates can vary across both time and units, increasing estimator precision.

3.) Panel data are essential for addressing some research questions. Some questions can't be adequately addressed using cross sectional or time series data, and in these cases the use of panel data becomes necessary.


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