1.2 DATA TYPES

Outline 1.0 Data types 2.0 Sources of data

1. Data types There are 3 types of data Cross sectional data Time series data Panel data

1.1 Time series data A time series is a set of observations on the values that a variable takes at different times Such data may be collected at regular time intervals Minutely and Hourly- collected literally continuously ( the so-called real time quote) Daily- e.g., Financial time series-Stock prices, exchange rates; weather reports- rainfall, temperature Weekly – e.g., money supply Monthly- e.g., consumer price index Quarterly- e.g., GDP Semi-annually- e.g., Fiscal data Annually- e.g., Fiscal data

Illustration of time series

Example: Consumption and Income (annual)

1.2 Cross-sectional data Cross-section data are data on one or more variables collected at the same point in time Survey data- questionnaire is designed to capture all variables a research is looking for. Macro data relating to different economic entities : countries, banks at a particular point in time. E.g. 2010 Other data

Summary data from income survey

Cross-country data

1.3 Panel/pooled data Panel data is a combination of both time and cross-section data Specialized type is the longitudinal or micropanel data where a cross-sectional unit (say, individual, family, firm) is surveyed over time. Surveying same individual over time is able to provide useful information on the dynamics of individual/household/firm behavior

Example 1

Pooling data

Longitudinal/Micropanel data

2.0 SOURCES OF DATA Data may be obtained from primary as well as secondary sources. Primary sources - Primary data information obtained firsthand by the researcher on the variables of interest for the specific purpose of the study Secondary Sources- Secondary data information gathered from existing sources

2.1 Secondary sources This is data collected by someone other than the researcher conducting the study Sources of secondary data include: Books and periodicals Government publications Census data etc

2.1.1 Common sources Secondary data Data used in macroeconomic analysis may be collected by Governmental agency International agency Private organizations Individual

2.1.2 Governmental agencies These are agencies established by governments to collect data. These may include: Ministries, Central/Reserve banks, Statistical agencies.

2.1.3 International agencies These are international institutions which provide credible data. E.g., International Monetary Fund (IMF)- International Financial statistics, etc World Bank (WB)- World development indicators, African development indicators African Development Bank (ADB) Practical Exercise Try to navigate the IMF , WB & ADB macro data

2.1.4 Private organizations Some private institutions collect and construct some useful data sets used by economists. Standard and poor, Moody, etc – provide information on country ratings. Transparency International (TI)- provides data on corruption perceptions index (CPI) Most of these institutions sell this data Exercise: Go to the TI website and try to access data on CPI.

2.1.5 Individuals Some individuals conduct surveys, assemble the data in a particular format and sell it. Others construct indices which they offer for sale or donate. Chinn-Ito index- on financial liberalization

2.2 Primary sources The main primary sources include: Individuals Focus groups Panels

2.2.1 Individuals Here information is obtained from individuals through: interviews: - face-to-face, telephone, computer, electronic media. administered questionnaires:- personally administered, mail, electronically administered. Observation:- observe individuals and events without videotaping or audio recording

2.2.2 Focus groups Focus groups may be of 8-10 persons with a moderator leading the discussions on a particular topic, concept, or product. The role of the moderator is to introduce the topic, observe and take notes or tape the discussion. Members of the group are chosen by virtue of their expertise or experience of the subject. Focus group discussions are aimed at obtaining respondents’ impressions, interpretations, and opinions on the subject. The nature of data obtained is qualitative .

2.2.3 Panels Panels are like focus groups. Difference- Focus group- is a one-time session while panels meet more than once. Panels are useful when a particular issue is being observed over time-political developments, economic developments Panels may be static or dynamic. Static- same members serve on the panel over extended periods of time. Dynamic-members change from time to time as the various phases of the study are rolled out.