Panel data is a type of data that combines both cross-sectional and time-series information. It consists of observations on multiple subjects, such as individuals, companies, or countries, collected over several time periods. This structure allows researchers to analyze changes over time while controlling for individual differences. One of the main advantages of panel data is its ability to provide insights into dynamic behaviors and trends. By observing the same subjects repeatedly, researchers can identify patterns, causal relationships, and the effects of specific variables over time, leading to more robust conclusions in various fields, including economics and social sciences.