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What is the difference between balanced and unbalanced panels? A. Unbalanced panels have some observations missing,...

What is the difference between balanced and unbalanced panels?

A. Unbalanced panels have some observations missing, balanced do not.

B. Balanced panels are demographically representative of the population being studied, unbalanced are not.

C. Balanced panels have an equal number of observations above and below the mean of the dependent variable, unbalanced panels are skewed.

D. A balanced panel has T = N, an unbalanced panel has N>T or N

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Answer #1

A panel data set is said to be “unbalanced” is it does not contain all the time variable, => if some data are missing, => here the correct answer is “A”, => in "unbalanced panel" have some observation missing but "balanced" do not.

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