Linear Stochastic Differential Equation Models for Panel Data with Unobserved Variables

Since Coleman (1968), sociologists have increasingly used differential equation models to analyze continuous dependent variables over time. Current applications of these models include, for example, Hummon, Doreian, and Teuter's (1975) analysis of control in organizations, Freeman and Hannan's (1975) model of organizational growth and decline, S6rensen's (1977) model of occupational mobility, Nielsen's (1980) analysis of the Flemish movement in Belgium, Rosenfeld's (1980) analysis of career dynamics, and Carroll's (1981) model of organizational expansion in