The pooling of cross section and time series data has become an increasingly popular way of quantifying economic relationships. Each of these data series provides information lacking in the other, so using a combination of both data series leads to more accurate and reliable results than using only one data series. This restructured, updated Third Edition provides a general overview of the econometrics of panel data, from both theoretical and applied viewpoints. Readers discover how econometric tools are used to study organizational and household behaviors as well as other macroeconomic phenomena such as economic growth. The book contains sixteen entirely new chapters; all other chapters have been revised to account for recent developments. With contributions from well known specialists in the field, this handbook is a standard reference for all those involved in the use of panel data in econometrics.