I'm having problem to understand how my dataset should be organized. I have unbalanced panel data with observations of products' prices as independent variable. Data is from a 3-year period.

Simplified version:

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Now, I want to include annual GDP per capita, population, income per capita as instrumental variables.

Where should I put it - to the columns to the right for overy observation? Should I choose the value from the same year in which the product was observed or year before?

Can someone please provide an example. Any guidance will be appreciated.

  • $\begingroup$ What analysis in which software have you planned? $\endgroup$ – Momo Jan 11 '15 at 13:55
  • $\begingroup$ @Momo I have Minitab and Eviews. So far, I have used mostly Minitab. In addition, an example in Excel may suffice just to get an idea. $\endgroup$ – quirik Jan 11 '15 at 13:59
  • $\begingroup$ @Momo I overlooked the first question. I am going to do regression analysis with 2SLS. Currently I am stucked with this issues and I want to check the proper way to organize my data. $\endgroup$ – quirik Jan 11 '15 at 22:45
  • $\begingroup$ +1 if only because people don't ask this question enough $\endgroup$ – shadowtalker Jan 12 '15 at 5:10
  • $\begingroup$ Can anyone please provide an example? $\endgroup$ – quirik Jan 13 '15 at 20:56

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