2
$\begingroup$

Can I use log-log/linear regression models by taking the natural logarithm of some variables?

Imagine I have a dependent variable $y$ and independent variables $x_1$, $x_2$, and $x_3$. Can I run the following regression:

$$\log(y) = \log(x_1)+\log(x_2) + x_3$$

$\endgroup$
5
$\begingroup$

You can absolutely mix logged and unlogged variables on the right hand side. For example, one never logs dummy or negative variables for obvious reasons.

However, I do think it is good to have principled reasons for doing this in your analysis.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.