panel_first_difference
Perform a first-difference estimate for panel data.
The First-Difference estimator for panel data analysis is focusing on the changes between consecutive observations for each entity (such as individuals, companies, or countries). By differencing the data, this method effectively removes entity-specific effects that are constant over time, allowing for the examination of the impact of changes in explanatory variables (x_columns) on the change in the dependent variable (y_column).
obb.econometrics.panel_first_difference(data: Union[list, dict, pd.DataFrame, List[pd.DataFrame], pd.Series, List[pd.Series], numpy.ndarray, Data, List[Data]], y_column: str, x_columns: List[str])
Parameters
- Standard
| Name | Type | Description | Default | Optional |
|---|---|---|---|---|
| data | List[Data] | Input dataset. | None | False |
| y_column | str | Target column. | None | False |
| x_columns | List[str] | List of columns to use as exogenous variables. | None | False |
Returns
OBBject with the fit model returned