Linked Questions
11 questions linked to/from Why is it that natural log changes are percentage changes? What is about logs that makes this so?
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interpreting results of a log-linear regression [duplicate]
I am running a log-linear regression model, using the Fatalities data set, where estimated regression is an outcome variable (Fatalities) and contains fixed effects for the year and state. I am taking ...
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What is the reason why we use natural logarithm (ln) rather than log to base 10 in specifying function in econometrics?
What is the reason why we use natural logarithm (ln) rather than log to base 10 in specifying functions in econometrics?
ritho
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Regression: Transforming Variables
When transforming variables, do you have to use all of the same transformation? For example, can I pick and choose differently transformed variables, as in:
Let, $x_1,x_2,x_3$ be age, length of ...
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How to calculate confidence interval for a geometric mean?
Apologies if this is confusing at all, I'm very unfamiliar with geometric means. For context, my data set is 35 month-end portfolio values. I found the month to month growth rate [Month(N)/Month(N-1)] ...
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Why can I interpret a log transformed dependent variable in terms of percent change in linear regression?
Looking at resources such as this one and this one, you see claims like
"Exponentiate the coefficient, subtract one from this number, and
multiply by 100. This gives the percent increase (or ...
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Should I use 'median' instead of 'mean' for nonparametric distributions?
I have a dataset that I determined was nonparametric. If I want to do calculations like '% change', and find the average percentage change, should I really find the median percentage change instead of ...
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Practical interpretation for $u_t = \log(x_t) - \log(x_{t-1})$
I have a time series $x_t$. If I use the transformation $u_t = log(x_t) - log(x_{t-1})$, my new time series $u_t$ has properties of white noise (random). I wonder whether there is any practical ...
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Cholesky Shock - Interpretation of logs in IRF Models
I came across a few articles here and there that conclude:
When the data (say variables X, Y) for an impulse response function are on log level, the y-axis depicts the % response of Y to a 1% shock ...
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Should i make correlation matrix of (1) first difference logarithm, (2) logarithm or (3) the natural numbers?
I am currently working on a project where I am looking at how prices are affected by changes in the exchange rates. For an example, I want to see how a change in my currency (Norwegian Kroner) affects ...
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Log-Level Model Parameter
Consider we have a population regression function (log-level model) with only one independent variable:
$$\log(y) = B_0 + B_1 \times x_1+u$$
In order to find the relationship between the increase of $...
