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Microeconometrics pp 89–107Cite as

Palgrave Macmillan

Longitudinal Data Analysis

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Part of the book series: The New Palgrave Economics Collection ((NPHE))

Abstract

‘Longitudinal data’ (or ‘panel data’) refers to data-sets that contain time series observations of a number of individuals. In other words, it provides multiple observations for each individual in the sample. Compared with cross-sectional data, in which observations for a number of individuals are available only for a given time, or time-series data, in which a single entity is observed over time, panel data have the obvious advantages of more degrees of freedom and less collinearity among explanatory variables, and so provide the possibility of obtaining more accurate parameter estimates. More importantly, by blending inter-individual differences with intra-individual dynamics, panel data allow the investigation of more complicated behavioural hypotheses than those that can be addressed using cross-sectional or time-series data.

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Authors
  1. Cheng Hsiao
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Editor information

Editors and Affiliations

  1. University of Wisconsin-Madison, USA

    Steven N. Durlauf

  2. Cornell University, USA

    Lawrence E. Blume

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© 2010 Palgrave Macmillan, a division of Macmillan Publishers Limited

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Hsiao, C. (2010). Longitudinal Data Analysis. In: Durlauf, S.N., Blume, L.E. (eds) Microeconometrics. The New Palgrave Economics Collection. Palgrave Macmillan, London. https://doi.org/10.1057/9780230280816_14

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