Timeline for Regression with a ratio as an independent variable

7 events

when toggle format	what		by	license	comment
S Sep 30, 2016 at 13:56	history	edited	Firebug	CC BY-SA 3.0	Including Mathjax equations
S Sep 30, 2016 at 13:56	history	suggested	Ferdi	CC BY-SA 3.0	Including Mathjax equations
Sep 30, 2016 at 13:53	review	Suggested edits
S Sep 30, 2016 at 13:56
Jun 16, 2016 at 4:07	vote	accept	dan
Jun 16, 2016 at 3:26	comment	added	Sympa		Depending on the shape of your variable there are different ways of capturing change. Let's say your variable is a nominal value like GDP. And, the GDP of the country you are looking at is $600 billion. In that case, the best detrended transformation is % growth in GDP over the previous period or: (GDP/GDP t-1) -1. And, you will get some value, let's say 1.5%. But, if your variable is the Unemployment rate, then you have to use a First Difference. So, if Unemployment decreased from one period to the next from 7% down to 6% your First Difference would be: 6% - 7% = -1%.
Jun 16, 2016 at 0:02	comment	added	dan		Thanks. By change in A and change in B do you A-min(A) and B-min(B)?
Jun 15, 2016 at 23:53	history	answered	Sympa	CC BY-SA 3.0