Applied Econometrics with EViews: A Complete Guide to Panel Statistics #paneldata #econometrics

Panel data combines both cross-sectional and time-series dimensions, offering significant advantages in econometric analysis. The "Panel Statistics" feature in EViews provides specialized tools to explore, summarize, and test this complex data structure. In EViews, panel statistical analysis begins with time-series graphs that can display data in stacked form, as individual cross-sections, or as period-specific summary lines. Furthermore, you can easily compute descriptive statistics by group using View/Stats by Classification combined with the @crossid identifier to analyze specific cross-sectional units. Notably, EViews supports the computation of Panel Covariances to measure the contemporaneous dependence between different cross-sections or within cross-section periods. This can be easily extended to Panel Principal Components analysis. For more advanced quantitative testing, EViews incorporates Panel Unit Root Tests (e.g., Levin-Lin-Chu, Im-Pesaran-Shin), Panel Cointegration tests (Pedroni, Kao), Panel Granger Causality tests , and Cross-section Dependence Tests like the Pesaran CD. To perform these operations, users simply need to ensure they are working in a panel-structured workfile, open a Series or Group object, navigate to the View menu, and select the respective tools such as Panel Covariance, Unit Root Tests, or Cointegration Test.