Which of these are advantages of using panel data?
(I) We can address a broader range of issues and tackle more complex problems than would be possible with pure time-series or pure cross-sectional data alone
(II) It allows us to increase the number of degrees of freedom
(III) It allows us to increase the power of the tests
(IV) We can remove the impact of certain forms of omitted variables bias in regression results
A) I only
B) I and II only
C) I, II and III only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

Panel data, which combines time-series and cross-sectional data, offers several advantages: it enables the study of more complex issues, increases degrees of freedom and the power of statistical tests, and can mitigate omitted variable bias by controlling for variables that vary across entities but not over time.

Which of These Are Advantages of Using Panel Data