NotesCross Sectional Data
Spacial variation.
Observations on different units (individuals, households, firms, countries, etc.) measured at the same point in time or within the same time interval.
Example:
- Data for individuals on labor force status, earnings, hours worked, etc.
- Data for firms on profits, R&D expenditures, patents awarded, etc.
Time-Series Data
Time variation.
Observations on the same unit measured at different points in time.
Example:
- Annual data for the U.S. on unemployment rate, inflation, GDP growth, budget deficit, etc.
- Daily returns and/or prices for a given stock or other financial asset
Panel Data
Both spacial and time variation.
Data with both a cross-section dimension and a time-series dimension.
In economics, you want to have panel data because you are able to use a lot more econometric tools to estimate the true effects of things.
Example:
- Annual data for all 50 states on smoking rates and cigarette taxes
- Monthly data for all 50 states on influenza vaccination rates, deaths caused by influenza, and hospitalizations caused by influenza
- Annual data for many countries on unemployment rate, inflation rate, and GDP growth
- Data on all facility emissions in the US for 50 years, data on mortality per county for 50 years