import xlwt

def output(filename, sheet, list1, list2, x, y, z):
    book = xlwt.Workbook()
    sh = book.add_sheet(sheet)

    variables = [x, y, z]
    x_desc = 'Display'
    y_desc = 'Dominance'
    z_desc = 'Test'
    desc = [x_desc, y_desc, z_desc]

    col1_name = 'Stimulus Time'
    col2_name = 'Reaction Time'

    #You may need to group the variables together
    #for n, (v_desc, v) in enumerate(zip(desc, variables)):
    for n, v_desc, v in enumerate(zip(desc, variables)):
        sh.write(n, 0, v_desc)
        sh.write(n, 1, v)

    n+=1

    sh.write(n, 0, col1_name)
    sh.write(n, 1, col2_name)

    for m, e1 in enumerate(list1, n+1):
        sh.write(m, 0, e1)

    for m, e2 in enumerate(list2, n+1):
        sh.write(m, 1, e2)

    book.save(filename)

In [1]: from pandas import DataFrame
In [2]: l1 = [1,2,3,4]
In [3]: l2 = [1,2,3,4]
In [3]: df = DataFrame({'Stimulus Time': l1, 'Reaction Time': l2})
In [4]: df
Out[4]:
   Reaction Time  Stimulus Time
0              1              1
1              2              2
2              3              3
3              4              4

In [5]: df.to_excel('test.xlsx', sheet_name='sheet1', index=False)