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Taking the log of variable with Positive, Zero and Negative Values
Users:=20
I have a variable that is defined as a weekly growth rate (WGrt)=C2=A0defin=
ed as (( Yt- Yt-1)/Yt-1)*100; =C2=A0where Yt is Growth rate in the current =
week, Yt-1 is the Growth rate in the prior week. Values for WGrt can be as =
high as +20 and can be as low as -50 with zero=C2=A0 values=C2=A0and =C2=A0=
various positive and negative numbers in between. I would like to estimate =
a linear model with both my dependent=C2=A0 and independent variables being=
in log form so that my estimated coefficients can be interpretted as elast=
icities. What is a statistical valid way of taking log(WGrt)=C2=A0 in such =
circumstances=C2=A0 such that this new variable=C2=A0 has no distortions?=
=20
Thanks=20
Doyle=20
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 djrk0003 (51)
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2/27/2010 7:49:32 AM |
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