Code should execute sequentially if run in a Jupyter notebook

# Pandas¶

## Overview¶

Pandas is a package of fast, efficient data analysis tools for Python.

Its popularity has surged in recent years, coincident with the rise of fields such as data science and machine learning.

Here’s a popularity comparison over time against STATA and SAS, courtesy of Stack Overflow Trends

Just as NumPy provides the basic array data type plus core array operations, pandas

1. defines fundamental structures for working with data and
2. endows them with methods that facilitate operations such as

• working with dates and time series
• sorting, grouping, re-ordering and general data munging [1]
• dealing with missing values, etc., etc.

More sophisticated statistical functionality is left to other packages, such as statsmodels and scikit-learn, which are built on top of pandas.

This lecture will provide a basic introduction to pandas.

Throughout the lecture, we will assume that the following imports have taken place

In [1]:
import pandas as pd
import numpy as np


## Series¶

Two important data types defined by pandas are Series and DataFrame.

You can think of a Series as a “column” of data, such as a collection of observations on a single variable.

A DataFrame is an object for storing related columns of data.

In [2]:
s = pd.Series(np.random.randn(4), name='daily returns')
s

Out[2]:
0   -0.142926
1   -0.071692
2   -0.204879
3    0.629611
Name: daily returns, dtype: float64

Here you can imagine the indices 0, 1, 2, 3 as indexing four listed companies, and the values being daily returns on their shares.

Pandas Series are built on top of NumPy arrays and support many similar operations

In [3]:
s * 100

Out[3]:
0   -14.292561
1    -7.169177
2   -20.487888
3    62.961052
Name: daily returns, dtype: float64
In [4]:
np.abs(s)

Out[4]:
0    0.142926
1    0.071692
2    0.204879
3    0.629611
Name: daily returns, dtype: float64

But Series provide more than NumPy arrays.

Not only do they have some additional (statistically oriented) methods

In [5]:
s.describe()

Out[5]:
count    4.000000
mean     0.052529
std      0.388551
min     -0.204879
25%     -0.158414
50%     -0.107309
75%      0.103634
max      0.629611
Name: daily returns, dtype: float64

But their indices are more flexible

In [6]:
s.index = ['AMZN', 'AAPL', 'MSFT', 'GOOG']
s

Out[6]:
AMZN   -0.142926
AAPL   -0.071692
MSFT   -0.204879
GOOG    0.629611
Name: daily returns, dtype: float64

Viewed in this way, Series are like fast, efficient Python dictionaries (with the restriction that the items in the dictionary all have the same type—in this case, floats).

In fact, you can use much of the same syntax as Python dictionaries

In [7]:
s['AMZN']

Out[7]:
-0.14292560688248288
In [8]:
s['AMZN'] = 0
s

Out[8]:
AMZN    0.000000
AAPL   -0.071692
MSFT   -0.204879
GOOG    0.629611
Name: daily returns, dtype: float64
In [9]:
'AAPL' in s

Out[9]:
True

## DataFrames¶

While a Series is a single column of data, a DataFrame is several columns, one for each variable.

In essence, a DataFrame in pandas is analogous to a (highly optimized) Excel spreadsheet.

Thus, it is a powerful tool for representing and analyzing data that are naturally organized into rows and columns, often with descriptive indexes for individual rows and individual columns.

Let’s look at an example that reads data from the CSV file pandas/data/test_pwt.csv that can be downloaded here.

Here’s the content of test_pwt.csv

"country","country isocode","year","POP","XRAT","tcgdp","cc","cg"
"Argentina","ARG","2000","37335.653","0.9995","295072.21869","75.716805379","5.5788042896"
"Australia","AUS","2000","19053.186","1.72483","541804.6521","67.759025993","6.7200975332"
"India","IND","2000","1006300.297","44.9416","1728144.3748","64.575551328","14.072205773"
"Israel","ISR","2000","6114.57","4.07733","129253.89423","64.436450847","10.266688415"
"Malawi","MWI","2000","11801.505","59.543808333","5026.2217836","74.707624181","11.658954494"
"South Africa","ZAF","2000","45064.098","6.93983","227242.36949","72.718710427","5.7265463933"
"United States","USA","2000","282171.957","1","9898700","72.347054303","6.0324539789"
"Uruguay","URY","2000","3219.793","12.099591667","25255.961693","78.978740282","5.108067988"


Supposing you have this data saved as test_pwt.csv in the present working directory (type %pwd in Jupyter to see what this is), it can be read in as follows:

In [10]:
df = pd.read_csv('https://github.com/QuantEcon/QuantEcon.lectures.code/raw/master/pandas/data/test_pwt.csv')
type(df)

Out[10]:
pandas.core.frame.DataFrame
In [11]:
df

Out[11]:
country country isocode year POP XRAT tcgdp cc cg
0 Argentina ARG 2000 37335.653 0.999500 2.950722e+05 75.716805 5.578804
1 Australia AUS 2000 19053.186 1.724830 5.418047e+05 67.759026 6.720098
2 India IND 2000 1006300.297 44.941600 1.728144e+06 64.575551 14.072206
3 Israel ISR 2000 6114.570 4.077330 1.292539e+05 64.436451 10.266688
4 Malawi MWI 2000 11801.505 59.543808 5.026222e+03 74.707624 11.658954
5 South Africa ZAF 2000 45064.098 6.939830 2.272424e+05 72.718710 5.726546
6 United States USA 2000 282171.957 1.000000 9.898700e+06 72.347054 6.032454
7 Uruguay URY 2000 3219.793 12.099592 2.525596e+04 78.978740 5.108068

We can select particular rows using standard Python array slicing notation

In [12]:
df[2:5]

Out[12]:
country country isocode year POP XRAT tcgdp cc cg
2 India IND 2000 1006300.297 44.941600 1.728144e+06 64.575551 14.072206
3 Israel ISR 2000 6114.570 4.077330 1.292539e+05 64.436451 10.266688
4 Malawi MWI 2000 11801.505 59.543808 5.026222e+03 74.707624 11.658954

To select columns, we can pass a list containing the names of the desired columns represented as strings

In [13]:
df[['country', 'tcgdp']]

Out[13]:
country tcgdp
0 Argentina 2.950722e+05
1 Australia 5.418047e+05
2 India 1.728144e+06
3 Israel 1.292539e+05
4 Malawi 5.026222e+03
5 South Africa 2.272424e+05
6 United States 9.898700e+06
7 Uruguay 2.525596e+04

To select both rows and columns using integers, the iloc attribute should be used with the format .iloc[rows, columns]

In [14]:
df.iloc[2:5, 0:4]

Out[14]:
country country isocode year POP
2 India IND 2000 1006300.297
3 Israel ISR 2000 6114.570
4 Malawi MWI 2000 11801.505

To select rows and columns using a mixture of integers and labels, the loc attribute can be used in a similar way

In [15]:
df.loc[df.index[2:5], ['country', 'tcgdp']]

Out[15]:
country tcgdp
2 India 1.728144e+06
3 Israel 1.292539e+05
4 Malawi 5.026222e+03

Let’s imagine that we’re only interested in population and total GDP (tcgdp).

One way to strip the data frame df down to only these variables is to overwrite the dataframe using the selection method described above

In [16]:
df = df[['country', 'POP', 'tcgdp']]
df

Out[16]:
country POP tcgdp
0 Argentina 37335.653 2.950722e+05
1 Australia 19053.186 5.418047e+05
2 India 1006300.297 1.728144e+06
3 Israel 6114.570 1.292539e+05
4 Malawi 11801.505 5.026222e+03
5 South Africa 45064.098 2.272424e+05
6 United States 282171.957 9.898700e+06
7 Uruguay 3219.793 2.525596e+04

Here the index 0, 1,..., 7 is redundant because we can use the country names as an index.

To do this, we set the index to be the country variable in the dataframe

In [17]:
df = df.set_index('country')
df

Out[17]:
POP tcgdp
country
Argentina 37335.653 2.950722e+05
Australia 19053.186 5.418047e+05
India 1006300.297 1.728144e+06
Israel 6114.570 1.292539e+05
Malawi 11801.505 5.026222e+03
South Africa 45064.098 2.272424e+05
United States 282171.957 9.898700e+06
Uruguay 3219.793 2.525596e+04

Let’s give the columns slightly better names

In [18]:
df.columns = 'population', 'total GDP'
df

Out[18]:
population total GDP
country
Argentina 37335.653 2.950722e+05
Australia 19053.186 5.418047e+05
India 1006300.297 1.728144e+06
Israel 6114.570 1.292539e+05
Malawi 11801.505 5.026222e+03
South Africa 45064.098 2.272424e+05
United States 282171.957 9.898700e+06
Uruguay 3219.793 2.525596e+04

Population is in thousands, let’s revert to single units

In [19]:
df['population'] = df['population'] * 1e3
df

Out[19]:
population total GDP
country
Argentina 3.733565e+07 2.950722e+05
Australia 1.905319e+07 5.418047e+05
India 1.006300e+09 1.728144e+06
Israel 6.114570e+06 1.292539e+05
Malawi 1.180150e+07 5.026222e+03
South Africa 4.506410e+07 2.272424e+05
United States 2.821720e+08 9.898700e+06
Uruguay 3.219793e+06 2.525596e+04

Next, we’re going to add a column showing real GDP per capita, multiplying by 1,000,000 as we go because total GDP is in millions

In [20]:
df['GDP percap'] = df['total GDP'] * 1e6 / df['population']
df

Out[20]:
population total GDP GDP percap
country
Argentina 3.733565e+07 2.950722e+05 7903.229085
Australia 1.905319e+07 5.418047e+05 28436.433261
India 1.006300e+09 1.728144e+06 1717.324719
Israel 6.114570e+06 1.292539e+05 21138.672749
Malawi 1.180150e+07 5.026222e+03 425.896679
South Africa 4.506410e+07 2.272424e+05 5042.647686
United States 2.821720e+08 9.898700e+06 35080.381854
Uruguay 3.219793e+06 2.525596e+04 7843.970620

One of the nice things about pandas DataFrame and Series objects is that they have methods for plotting and visualization that work through Matplotlib.

For example, we can easily generate a bar plot of GDP per capita

In [21]:
import matplotlib.pyplot as plt
%matplotlib inline

df['GDP percap'].plot(kind='bar')
plt.show()


At the moment the data frame is ordered alphabetically on the countries—let’s change it to GDP per capita

In [22]:
df = df.sort_values(by='GDP percap', ascending=False)
df

Out[22]:
population total GDP GDP percap
country
United States 2.821720e+08 9.898700e+06 35080.381854
Australia 1.905319e+07 5.418047e+05 28436.433261
Israel 6.114570e+06 1.292539e+05 21138.672749
Argentina 3.733565e+07 2.950722e+05 7903.229085
Uruguay 3.219793e+06 2.525596e+04 7843.970620
South Africa 4.506410e+07 2.272424e+05 5042.647686
India 1.006300e+09 1.728144e+06 1717.324719
Malawi 1.180150e+07 5.026222e+03 425.896679

Plotting as before now yields

In [23]:
df['GDP percap'].plot(kind='bar')
plt.show()


## On-Line Data Sources¶

Python makes it straightforward to query online databases programmatically.

An important database for economists is FRED — a vast collection of time series data maintained by the St. Louis Fed.

For example, suppose that we are interested in the unemployment rate.

Via FRED, the entire series for the US civilian unemployment rate can be downloaded directly by entering this URL into your browser (note that this requires an internet connection)

https://research.stlouisfed.org/fred2/series/UNRATE/downloaddata/UNRATE.csv


This request returns a CSV file, which will be handled by your default application for this class of files.

Alternatively, we can access the CSV file from within a Python program.

This can be done with a variety of methods.

### Accessing Data with requests¶

One option is to use requests, a standard Python library for requesting data over the Internet.

To begin, try the following code on your computer

In [24]:
import requests



If there’s no error message, then the call has succeeded.

If you do get an error, then there are two likely causes

1. You are not connected to the Internet — hopefully, this isn’t the case.
2. Your machine is accessing the Internet through a proxy server, and Python isn’t aware of this.

In the second case, you can either

Assuming that all is working, you can now proceed to use the source object returned by the call requests.get('http://research.stlouisfed.org/fred2/series/UNRATE/downloaddata/UNRATE.csv')

In [25]:
url = 'http://research.stlouisfed.org/fred2/series/UNRATE/downloaddata/UNRATE.csv'
source = requests.get(url).content.decode().split("\n")
source[0]

Out[25]:
'DATE,VALUE\r'
In [26]:
source[1]

Out[26]:
'1948-01-01,3.4\r'
In [27]:
source[2]

Out[27]:
'1948-02-01,3.8\r'

We could now write some additional code to parse this text and store it as an array.

But this is unnecessary — pandas’ read_csv function can handle the task for us.

We use parse_dates=True so that pandas recognizes our dates column, allowing for simple date filtering

In [28]:
data = pd.read_csv(url, index_col=0, parse_dates=True)


The data has been read into a pandas DataFrame called data that we can now manipulate in the usual way

In [29]:
type(data)

Out[29]:
pandas.core.frame.DataFrame
In [30]:
data.head()  # A useful method to get a quick look at a data frame

Out[30]:
VALUE
DATE
1948-01-01 3.4
1948-02-01 3.8
1948-03-01 4.0
1948-04-01 3.9
1948-05-01 3.5
In [31]:
pd.set_option('precision', 1)
data.describe()  # Your output might differ slightly

Out[31]:
VALUE
count 858.0
mean 5.7
std 1.6
min 2.5
25% 4.5
50% 5.6
75% 6.8
max 10.8

We can also plot the unemployment rate from 2006 to 2012 as follows

In [32]:
data['2006':'2012'].plot()
plt.show()


### Accessing World Bank Data¶

Let’s look at one more example of downloading and manipulating data — this time from the World Bank.

The World Bank collects and organizes data on a huge range of indicators.

For example, here’s some data on government debt as a ratio to GDP.

The next program does this for you, reads an Excel file into a pandas DataFrame, and plots time series for the US and Australia

In [33]:
import matplotlib.pyplot as plt
import requests
import pandas as pd

# == Get data and read into file gd.xls == #
r = requests.get(wb_data_query)
with open('gd.xls', 'wb') as output:
output.write(r.content)

# == Parse data into a DataFrame == #
govt_debt = pd.read_excel('gd.xls', sheet_name='Data', skiprows=3, index_col=1)

# == Take desired values and plot == #
govt_debt = govt_debt.transpose()
govt_debt = govt_debt[['AUS', 'USA']]
govt_debt = govt_debt[38:]
govt_debt.plot(lw=2)
plt.show()


(The file is pandas/wb_download.py, and can be downloaded here).

## Exercises¶

### Exercise 1¶

Write a program to calculate the percentage price change over 2013 for the following shares

In [34]:
ticker_list = {'INTC': 'Intel',
'MSFT': 'Microsoft',
'IBM': 'IBM',
'BHP': 'BHP',
'TM': 'Toyota',
'AAPL': 'Apple',
'AMZN': 'Amazon',
'BA': 'Boeing',
'QCOM': 'Qualcomm',
'KO': 'Coca-Cola',
'SNE': 'Sony',
'PTR': 'PetroChina'}


A dataset of daily closing prices for the above firms can be found in pandas/data/ticker_data.csv and can be downloaded here.

Plot the result as a bar graph like follows

## Solutions¶

### Exercise 1¶

In [35]:
ticker = pd.read_csv('https://github.com/QuantEcon/QuantEcon.lectures.code/raw/master/pandas/data/ticker_data.csv')
ticker.set_index('Date', inplace=True)

ticker_list = {'INTC': 'Intel',
'MSFT': 'Microsoft',
'IBM': 'IBM',
'BHP': 'BHP',
'TM': 'Toyota',
'AAPL': 'Apple',
'AMZN': 'Amazon',
'BA': 'Boeing',
'QCOM': 'Qualcomm',
'KO': 'Coca-Cola',
'SNE': 'Sony',
'PTR': 'PetroChina'}

price_change = pd.Series()

for tick in ticker_list:
change = 100 * (ticker.loc[ticker.index[-1], tick] - ticker.loc[ticker.index[0], tick]) / ticker.loc[ticker.index[0], tick]
name = ticker_list[tick]
price_change[name] = change

price_change.sort_values(inplace=True)
fig, ax = plt.subplots(figsize=(10,8))
price_change.plot(kind='bar', ax=ax)
plt.show()


Footnotes

[1] Wikipedia defines munging as cleaning data from one raw form into a structured, purged one.

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