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What is Two-Way Error Model

Chapter 45
Encyclopedia of Information Science and Technology, Fifth Edition
A model that considers two group of the data (for example, year and country).
Published in Chapter:
Panel Data: A Case Study Analysis
Vera Costa (FEUP, University of Porto, Portugal) and Rui Portocarrero Sarmento (Statsframe, University of Porto, Portugal)
Copyright: © 2021 |Pages: 21
DOI: 10.4018/978-1-7998-3479-3.ch045
Abstract
Panel data is a regression analysis type that uses time data and spatial data. Thus, the behavior of groups, for example, enterprises or communities, is analyzed through a time scale. Panel data allows exploring variables that cannot be observed or measured or variables that evolve over time but not across groups or communities. In this chapter, two different techniques used in panel data analysis is explored: fixed effects (FE) and random effects (RE). First, theoretical concepts of panel data are presented. Additionally, a case study example of the use of this type of regression is provided. Panel data analysis is performed with R language, and a step-by-step approach is presented.
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