Introduction

Panel Data Linear Models

The PANEL procedure deals with panel data sets that consist of time series observations on each of several cross-sectional units. The PANEL procedure includes the following features:

  • one-way and two-way fixed effects

  • one-way and two-way random effects

  • variance component estimation by the following methods:

    • Fuller and Battese method (variance component model)

    • Wansbeek and Kapteyn method

    • Wallace and Hussain method

    • Nerlove method

  • Parks method (autoregressive model)

  • Da Silva method (mixed variance component moving-average model)

  • Hausman-Taylor and Amemiya-MaCurdy estimation

  • dynamic-panel estimation one-step, two-step, or iterative generalized method of moments (GMM)

  • support for unbalanced panel data for all methods

  • model specification tests

  • panel data unit-root tests

  • automatic generation of lagged variables

  • model comparison tables

  • model specification tests

  • variety of estimates and statistics, including the following:

    • underlying error components estimates

    • regression parameter estimates

    • standard errors of estimates

    • t tests

    • R-square statistic

    • correlation matrix of estimates

    • covariance matrix of estimates

    • autoregressive parameter estimate

    • cross-sectional components estimates

    • autocovariance estimates

    • F tests of linear hypotheses about the regression parameters

    • specification tests, including the Hausman test

Last updated: June 19, 2025