New Understanding and Insights from Time-Series Data Based on Two Generic Measures

Time distance is an innovative approach for looking at time-series data. Expressed in time units, the approach is easy to understand and provides a useful complement to existing methods. The time distance approach compares time series in the horizontal dimension, i.e. for a given level of the variable, based on two generic statistical measures: S-time-distance and S-time-step. These measures are based on a time matrix that summarises information over many units and years and that provides a first-level visualization tool. The paper also introduces the concept of the ‘overall degree of disparity’, defined as proximity in the indicator space as well as in time, arguing that this concept has the potential to bring new understanding in economics, management, research and statistics.