Gross Domestic Product Modeling Using “Panel-Data” Concept

In this work, we want to predict gross domestic product (GDP) using ‘panel-data’ models. Gross domestic product for fifteen individual countries of Europe in different four years (1995, 2000, 2005 and 2010) under various components of GDP are used here. The panel-data models have been developed using the investment, labour force growth and budget surplus as inputs in order to predict the GDP of the countries which help us to perceive the economic condition of Europe from the statistical point of view. The results indicate that the random effects model is more appropriate than fixed effects model. In addition, this chapter also contains a panel data regression model with cross-sectional dependence, heteroscedasticity and also considers serially correlated disturbances for random effects.

DOI: 10.1007/978-3-030-72929-5_9 openalex: W3168928502 mag: 3168928502