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Error Components Models

  • Chapter
The Econometrics of Panel Data

Part of the book series: Advanced Studies in Theoretical and Applied Econometrics ((ASTA,volume 33))

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Abstract

In this chapter we discuss the error components model — probably the most commonly used approach of modelling economic relashionships using panel data. The reasons for this popularity are:1

  1. 1.

    Their ability to handle data bases of virtually any size.

  2. 2.

    The estimation and hypothesis testing methods are derived from wellknown, classical procedures.

  3. 3.

    Most of the problems and difficulties can be handled in the traditional framework.

  4. 4.

    It is the model whose theoretical frontiers have been most thoroughly investigated.

  5. 5.

    The estimation results are easily interpreted.

  6. 6.

    The most commonly used econometric and statistical software packages can be used with only minor modifications.

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Authors
  1. László Mátyás
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Editor information

Editors and Affiliations

  1. Monash University, Melbourne and Budapest University of Economics, Australia

    László Mátyás

  2. ERUDITE, Université de Paris-Val-de-Marne, France

    Patrick Sevestre

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© 1996 Kluwer Academic Publishers

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Mátyás, L. (1996). Error Components Models. In: Mátyás, L., Sevestre, P. (eds) The Econometrics of Panel Data. Advanced Studies in Theoretical and Applied Econometrics, vol 33. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-0137-7_4

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  • DOI: https://doi.org/10.1007/978-94-009-0137-7_4

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-0-7923-3787-4

  • Online ISBN: 978-94-009-0137-7

  • eBook Packages: Springer Book Archive

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