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Concept
Panel analysis
Summary
Panel (data) analysis is a statistical method, widely used in social science, epidemiology, and econometrics to analyze two-dimensional (typically cross sectional and longitudinal) panel data. The data are usually collected over time and over the same individuals and then a regression is run over these two dimensions. Multidimensional analysis is an econometric method in which data are collected over more than two dimensions (typically, time, individuals, and some third dimension).
A common panel data regression model looks like y_{it}=a+bx_{it}+\varepsilon_{it}, where y is the dependent variable, x is the independent variable, a and b are coefficients, i and t are indices for individuals and time. The error \varepsilon_{it} is very important in this analysis. Assumptions about the error term determine whether we speak of fixed effects or random effects. In a fixed effects model,
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