In
statistics
Statistics (from German language, German: ', "description of a State (polity), state, a country") is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a s ...
and
econometrics
Econometrics is an application of statistical methods to economic data in order to give empirical content to economic relationships. M. Hashem Pesaran (1987). "Econometrics", '' The New Palgrave: A Dictionary of Economics'', v. 2, p. 8 p. 8 ...
, a cross-sectional regression is a type of
regression
Regression or regressions may refer to:
Arts and entertainment
* ''Regression'' (film), a 2015 horror film by Alejandro Amenábar, starring Ethan Hawke and Emma Watson
* ''Regression'' (magazine), an Australian punk rock fanzine (1982–1984)
* ...
in which the
explained and explanatory variables are all associated with the same single period or point in time. This type of
cross-sectional analysis
In statistics and econometrics, cross-sectional data is a type of data collected by observing many subjects (such as individuals, firms, countries, or regions) at a single point or period of time. Analysis of cross-sectional data usually consists ...
is in contrast to a
time-series regression
In mathematics, a time series is a series of data points indexed (or listed or graphed) in time order. Most commonly, a time series is a sequence taken at successive equally spaced points in time. Thus it is a sequence of discrete-time data. Ex ...
or
longitudinal regression in which the variables are considered to be associated with a sequence of points in time.
For example, in
economics
Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services.
Economics focuses on the behaviour and interac ...
a regression to explain and predict
money demand
In monetary economics, the demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits rather than investments. It can refer to the demand for money narrowly defined as M1 (economics), M1 (dire ...
(how much people choose to hold in the form of the most liquid assets) could be conducted with either
cross-sectional
In statistics and econometrics, cross-sectional data is a type of data collected by observing many subjects (such as individuals, firms, countries, or regions) at a single point or period of time. Analysis of cross-sectional data usually consists ...
or
time series
In mathematics, a time series is a series of data points indexed (or listed or graphed) in time order. Most commonly, a time series is a sequence taken at successive equally spaced points in time. Thus it is a sequence of discrete-time data. ...
data. A cross-sectional regression would have as each data point an observation on a particular individual's money holdings, income, and perhaps other variables at a single point in time, and different data points would reflect different individuals at the same point in time. In contrast, a regression using time series would have as each data point an entire economy's money holdings, income, etc. at one point in time, and different data points would be drawn on the same economy but at different points in time.
See also
*
Linear regression
In statistics, linear regression is a statistical model, model that estimates the relationship between a Scalar (mathematics), scalar response (dependent variable) and one or more explanatory variables (regressor or independent variable). A mode ...
*
Regression analysis
References
*
Preprint*
External links
A Review of Cross Sectional Regression for Financial DataLecture notes by Gary Koop, Department of Economics, University of Strathclyde
Regression analysis
Cross-sectional analysis
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