# Regression with a skewed dependent variable

I have a dependent variable ($Y$) whose distribution is as shown below. In particular, the variable exhibits positive skewness, has a few negative values and many positive values (generally less than one), and peaks near zero. The distribution after log transformation ($\ln(1+Y)$) is very similar too.

Would OLS models be a good choice in this case, or are there any alternatives that would better fit the nature of the dependent variable?

• That is the marginal distribution of the response, yes? But regression models do not make assumptions on the marginal distributions, only on the conditional distribution given the regressors! That can only be tested after fitting a model, by, say, plotting the residuals. So show us the residuals after a linear regression. Nov 20 '17 at 13:29