The main advantage of using panel data over cross sectional data is that it
A)gives you more observations.
B)allows you to analyze behavior across time but not across entities.
C)allows you to control for some types of omitted variables without actually observing them.
D)allows you to look up critical values in the standard normal distribution.

Question

Quizplus · Accepted Answer

Panel data allows for controlling for unobserved variables that affect both the outcome variable and the explanatory variables. This offers advantages compared to cross-sectional data where unobserved variables may bias the results.

The Main Advantage of Using Panel Data Over Cross Sectional