Panel data and models of change: A comparison of first difference and conventional two-wave models

摘要

The method of first differences as an approach to modeling change is described and it is compared to more conventional two-wave panel models. Substantial advantages are found to the first-difference approach, especially if there are unmeasured, unchanging predictor variables in the model. It is also argued that there are substantial problems in the interpretation of results from the conventional two-wave models. Some of the analytic results are illustrated with a number of applications to the area of stressful life events.