New answers tagged logarithm
2
votes
Diffrence in logs vs. a % changes in econometrics: why is the dif log approvimation almost always used when the exact quantity is easily available?
Many econometricians/statisticians view the "force of growth" as the most natural measure and therefore see the percentage change as the approximation
The reason for this usage is that ...
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2
votes
Diffrence in logs vs. a % changes in econometrics: why is the dif log approvimation almost always used when the exact quantity is easily available?
I could not immediately find this question already answered, the closest being the comments here.
The key reasons why it's better to work in the log scale are outlined there:
log changes are additive,...
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1
vote
Accepted
Dealing with 0's in loglog regression by using indicator functions I(x > 0)?
Your suggestion is equivalent to using the function if x<=0 then 0 else log (x). This has a big discontinuity at 0, since the log of a small number is a large ...
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