Why do you want to perform panel data analysis?
Some of the reasons could be to explore the behaviour of a variable across a sample of groups (e.g. firms, schools, countries, agro produce, individuals, cars, production style, political parties etc.); to explore the behaviour of the groups in the sample with respect to a variable; the groups have some semblance of commonness; the groups have varying heterogeneities (i.e. differences) with respect to a variable; perhaps due to inadequate data over a long period for your sample or maybe you just don’t know why! (lol).
I give 5 tips required for building an engaging panel data structure. They are (1) generate identifiers (watch my video on “Reshape Wide to Longitudinal Data”); (2) reshape the data (watch my video on “Reshape Wide to Longitudinal Data”); (3) group classification (to explore the heterogeneities in the data); (4) categorise the outcome variable (to explore the heterogeneities in the data) and (5) create dummy variables (regional and time dummies).[Watch video tutorial]