In
statistics and
econometrics
Econometrics is the 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 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 medical research, social science, and biology, a cross-sectional study (also known as a cross-sectional analysis, transverse study, prevalence study) is a type of observational study that analyzes data from a population, or a representative su ...
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 the social science that studies the production, distribution, and consumption of goods and services.
Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes ...
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 (directly spendable ...
(how much people choose to hold in the form of the most liquid assets) could be conducted with either
cross-sectional
Cross-sectional data, or a cross section of a study population, in statistics and econometrics, is a type of data collected by observing many subjects (such as individuals, firms, countries, or regions) at the one point or period of time. The anal ...
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. Ex ...
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
*
Regression analysis
In statistical modeling, regression analysis is a set of statistical processes for estimating the relationships between a dependent variable (often called the 'outcome' or 'response' variable, or a 'label' in machine learning parlance) and one ...
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
{{statistics-stub