Panel Data and Difference-in-Differences Estimation

Research output: Chapter in Book/Entry/PoemChapter

4 Scopus citations


This article reviews some of the benefits and limitations of panel data. It also discusses fixed and random effects estimation and reviews some health economics applications that use these methods. Next, the difference-in-differences estimator, the Hausman test and the Hausman and Taylor estimation method are discussed and illustrated with empirical health applications. Dynamic panel data as well as limited dependent variable panel data models are discussed and once again illustrated with applications from health economics. This article ends by referring the reader to further extensions of these basic panel models and providing the appropriate references.

Original languageEnglish (US)
Title of host publicationEncyclopedia of Health Economics
Number of pages9
ISBN (Electronic)9780123756787
ISBN (Print)9780123756794
StatePublished - Jan 1 2014


  • Difference-in-differences
  • Dynamic panels
  • Hausman test
  • Limited dependent variables
  • Panel data

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance
  • General Business, Management and Accounting


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