Panel Data Analysis

Panel data analysis involves studying data that tracks multiple subjects—such as individuals, companies, or countries—over time. By observing these subjects across different periods, researchers can identify patterns and relationships that account for both individual differences and changes over time. This approach provides richer insights than analyzing just a single snapshot or a single subject. For example, it can help understand how a policy impacts companies over several years. Overall, panel data analysis helps uncover more accurate and nuanced conclusions about the factors influencing outcomes.