Panel Data Clustering and Its Application to Discount Rate of B Stock in China

Panel data is a two-dimensional data included time and the cross section. Through constructing a panel data matrix, the clustering method is applied to panel data analysis. This method solves the heterogeneity question of dependent variable which belongs to panel data, before on their statistical analysis. In the part of case analysis, the question about discount rate of B stock in China is studied by using panel data clustering method. We find that conducting every independent variable clustering and comparing the result with dependent clustering result contribute to estimate and test the regression model parameter.