I am not sure if the log transformation of the dependent (or independent) variable affects only the interpretations of the estimated coefficients of the independent variable? Are there any other potential problems?

For example, will the sign or significance level of the coefficients be different after log transformation of the dependent or independent variables?


marked as duplicate by usεr11852, Sven Hohenstein, kjetil b halvorsen, Christoph Hanck, whuber Feb 2 '16 at 0:26

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    $\begingroup$ I don't think this is a duplicate. This one is asking for how the transformation affects the estimation process rather than the estimates or their interpretation. $\endgroup$ – Peter Flom Feb 1 '16 at 13:06
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    $\begingroup$ I agree with Peter that this is different. At the same time, I'd ask yliu95 to think through and clarify the question. For example, "will the ... significance level of the coefficients be different": that's exactly why you would transform in the first place: the transformation would make the relationship more realistic (linear?) and therefore it should be more significant. $\endgroup$ – Wayne Feb 1 '16 at 15:49
  • $\begingroup$ Thanks Wayne! I think this post [stats.stackexchange.com/questions/18844/… answers my question. $\endgroup$ – yliu95 Feb 1 '16 at 16:30