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Re: st: how to use inverse hyperbolic sine function


From   wying1@umbc.edu
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: how to use inverse hyperbolic sine function
Date   Wed, 30 Mar 2005 19:58:18 -0500 (EST)

Thanks a lot, Scott.  Just two follow-up questions.

1) If my dependent variable is net worth (say the var name is "wealth"),
do I simply use log(wealth+sqrt(wealth^wealth+1)) as the dependent
variable in regression?
2) How to interpret the coefficients for control variables (eg. gender,
edu, logged wages)? Same as the log transformation?

Ying



> An inverse hyperbolic sine transformation is:
>  IHS = log(z + sqrt(z^z + 1))
>
> It is an alternative to log transformations when some of
> the variables take on zero or negative values and as
> an alternative to the Box-Cox when variables are zero or
> negative.
>
>
> See, for example:
>
> Layton, David F, 2001. "Alternative Approaches for Modeling
> Concave Willingness to Pay Functions in Conjoint Valuation,"
> American Journalof Agricultural Economics, vol. 83(5), 1314-20.
>
> Burbidge, John B., Lonnie Magee and A. Leslie Robb. 1988 "Alternative
> Transformations to Handle Extreme Values of the Dependent Variable."
>  Journal of the American Statistical Association, vol. 83, 123-127.
>
>
>
> Scott
>
>
> ----- Original Message -----
> From: wying1@umbc.edu
> Date: Wednesday, March 30, 2005 1:40 pm
> Subject: st: how to use inverse hyperbolic sine function
>
>> Dear users,
>>
>> I need to use inverse hyperbolic sine function to transform my
>> dependentvariables in a regression, which, honestly, I don't
>> understand very much.
>> I failed to find the relevant commands to perform this technique
>> in Stata
>> 7.0.  Does anybody have a relevant program which I can use as a
>> reference,and have suggestions about interpreting the coefficient
>> for varaibles like
>> gender?  Thanks a lot.
>>
>>
>>
>> Ying
>
>
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