Answer to Question #272933 in Macroeconomics for Butzin

Question

a) Discuss the 3 types of data used in economics.

Answer 1

1. Time series data - the time series data of a variable have a set of observations on values at different points of time. They are normally collected at fixed intervals such as quarterly, annually. Time series data is applied in financial economics where it is used for price analysis of stock.
2. Cross- section data - these are data collected at the same point in time for several persons. For instance, data on GNP per capita.
3. Pooled data - this represents a mixture of time series data and cross-section data. For example, GNP per capita of all European countries over 20 years.