Applycation Of Panal Data Analysis Method In The Relationship Between Income And Consumption Of Our Country

Panel Data has wide application value, it’s decided by the advantage of Panel Data Model and Panel Data cointegration test.Deepening and promoting its application study for our country’s economic theory and practice has important value and meaning.In the Panel Data Model, it can decompose the expansion observational effects, and can analyse the effects of the expansion observation on the explanation variables through the parameters’estimation. Panel Data Model can make full use of Time Series and Cross-sectional unit, can analyse the sequence and section’s generality, and can flexible analyze its personality.Usually, in the problem of the relationship between the residents’ income and consumption, we would use the Time Series analysis or Cross-sectional data analysis. Using time series data, can do analysis of national policy on certain provinces or the influence of the area, but can’t analyze different factors on the provinces or area. Using Cross-sectional data analysis can only analyse the static aspects. This paper use Panel Data analysis on our residents’relationship between income and consumption, the model goes deep into the provinces or region, and combines with the time factor analyse the income and consumption of our country roundly.The classical econometric analysis of Panel Data mainly includes unit root test and cointegration test. Time series unit root test is single sequence data difference; the inspection will lost some of the long-term information. Cointegration theory for the stationary series research provides a sample of the effective methods to keep information. Panel Data cointegration relationship for the test of the Panel Data’s characteristics make inspection process more complicated. Time Series cointegration theory mainly includes EG two footwork and Johansen cointegration test, Panel Data cointegration theory is mainly based on the two methods. In order to prevent false return, this paper applies unit root test and cointegration test on the income and consumption Panel Data. The results of the test is that in the income and consumption has two panel cointegration relation between variables.That is to say that panel regression can continue.In the theory elaborate part, firstly, introduces the Panel Data and Panel Data Model as well as Panel Data unit root and cointegration test.Then,the paper introduces several of the most commonly used methods and models.In the demonstration part a new model test method is applied,and compare results with the exist literature.On the demonstration part, this paper mainly studies the income and consumption relationship of residents in our country. Using Panel Data unit root test the character of the data.Bsed on the data exist unit root apply the panel cointegration test. After that, this parper use the covariance analysis method selects model form. And then use Hausman inspection determine the expansion observational effects.At the end, estimate the most appropriate model-individual time fixed effect panel data model. In the results, the effects value of each year are not identical, its declare that our state’s residents’ income and consumption really suffered by influence of the time factor. Combined with estimated result, this paper also puts forward some Suggestions on counterplan.