Panel Data Regression Analysis

Pooling of time series and cross sectional observation is called panel data and the
regression analysis of such data is known as panel data regression analysis. By
combining time series and cross sectional observations, panel data gives more
information, more variability more degree of freedom, less-collinearity among
variables and more efficiency. Therefore, these data are best suited for the study of
dynamic changes.
There are two types of panel data such as:
(i) Balanced Panel: In balanced panel all the cross sections have same
number of observations.
(ii) Unbalanced Panel: In unbalanced panel each cross section has different
number of observations.
More over there are also short panel and long panel. In short panel, number of
cross sections is greater that time period, but in long panel, number of cross sections
is less than time period