What Is Cross Sectional Regression
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What is cross sectional regression. In statistics and econometrics a cross sectional regression is a type of regression in which the explained and explanatory variables are all associated with the same single period or point in time. Cross sectional data also known as a study population s cross section is a kind of data gathered through the observation of several different subjects in the field of econometrics and statistics the subjects include firms regions individuals as well as countries. An example of cross sectional analysis in economics is the regression of money demand the amounts that various people hold in highly liquid financial assets at a particular time upon their income total financial wealth and various demographic factors.
We have explained and applied regression tools in the context of time ordered data. Cross sectional data is used in differential equations and statistical techniques. Regression analysis with cross sectional data 23 p art 1 of the text covers regression analysis with cross sectional data.
In one respect the cross sectional. This type of cross sectional analysis is in contrast to a time series regression or longitudinal regression in which the variables are considered to be associated with a sequence of points in time. Appendices a b and c contain complete reviews of these topics.
The same tools are directly applicable to cross sectional data. Cross sections or alternatively a cross section of time series. Uses of cross sectional data.
Primarily it is used for cross sectional regression. It builds upon a solid base of college algebra and basic concepts in probability and statistics. Cross sectional analysis is a type of analysis where an investor analyst or portfolio manager compares a particular company to its industry peers.
For example we might have monthly sales by each of 37 sales territories for the last 60 months.
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