Panel models – application in economic research

Analyzes based on panel data are appearing more and more in the scientific literature. Panel data have a spatial and temporal dimension, that is, a set of data in which the development of a phenomenon (spatial dimension) is monitored over a period of time. Most often, the spatial component is represented by respondents, companies, cities, states, while the time dimension includes days, months, quarters, years, etc. In this paper, the panel methodology is described, the theoretical framework of the panel methodology is explained, static and dynamic panel models are described and an overview of the advantages and disadvantages of the panel methodology is given. In the second part of the paper, the applicability of the panel methodology in economic research is analyzed and a review of previous research using the aforementioned methodology is given.