Merge Panel data to get balanced panel data

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There’s a function for that. Combine the data frames with rbind. Then use complete. It will look through the groups in variable and fill any with missing values:

library(tidyr)
df3 <- do.call(rbind.data.frame, list(df1, df2))
df3$Month <- as.character(df3$Month)
df4 <- complete(df3, Month, variable)
df4$Month <- as.yearmon(df4$Month, "%b %Y")
df5 <- df4[order(df4$variable,df4$Month),]
df5
# Source: local data frame [72 x 8]
# 
#       Month variable Beta1 Beta2 Beta3 Beta4 Beta5 Beta6
#      (yrmn)   (fctr) (int) (int) (int) (int) (int) (int)
# 1  Jan 2005        A     1     2     3     4     5     6
# 2  Feb 2005        A     2     3     4     5     6     7
# 3  Mar 2005        A     3     4     5     6     7     8
# 4  Apr 2005        A     4     5     6     7     8     9
# 5  May 2005        A     5     6     7     8     9    10
# 6  Jun 2005        A     6     7     8     9    10    11
# 7  Jul 2005        A     7     8     9    10    11    12
# 8  Aug 2005        A     8     9    10    11    12    13
# 9  Sep 2005        A     9    10    11    12    13    14
# 10 Oct 2005        A    10    11    12    13    14    15
# ..      ...      ...   ...   ...   ...   ...   ...   ...

An alternative implementation with dplyr & tidyr:

library(dplyr)
library(tidyr)

df3 <- bind_rows(df1, df2) %>% 
  complete(Month, variable)

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