Panel regression analysis is an enhanced version of ordinary regression analysis (OLS) that is helpful in interpreting data that has a panel structure, namely, data sets where observations of multiple phenomena are obtained over multiple occasions for the same panel members. The multiple occasions could refer to time, geographies, or other contexts. With multiple observations, we have more information to obtain more precise estimates of the effects of the variables, and such estimates can improve decision making.
The tool provides three different estimation options: (1) random effects, (2) fixed effects, and (3) pooled OLS.
Enginius offers an “Automatic” option whereby the best estimation method is automatically selected from the three options (random effects, fixed effects, and pooled OLS) based on the appropriate statistical tests.