Analysis Modes

Year-by-Year Cross-Sectional

Examines the correlation within a single year across countries. Use the year slider to see how the relationship evolves over time. Controls for temporal effects but requires sufficient cross-sectional variation.

Lagged First Differences

Analyzes the relationship between changes (Δx, Δy) from year to year. Centered on the origin. Helps identify whether changes in one variable are associated with changes in another, controlling for country-specific fixed effects.

Pooled Correlation

Combines all data points across all years and countries, ignoring temporal structure. Provides a simple overall correlation measure but may be misleading if the relationship changes over time.