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Very Usefull to Learn About Panel Data Regression

Very Usefull to Learn About Panel Data Regression

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Published by Abo Muaadh Ba-abbad

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Published by: Abo Muaadh Ba-abbad on Mar 19, 2012
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A short panel has many entities (large n) but few time periods (small T), while a long panel
has many time periods (large T) but few entities (Cameron and Trivedi, 2009: 230).
Accordingly, a short panel data set is wide in width (cross-sectional) and short in length
(time-series), whereas a long panel is narrow in width. Both too small N (Type I error) and
too large N (Type II error) problems matter. Researchers should be very careful especially
when examining either short or long panel.

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