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Re: st: how to use inverse hyperbolic sine function
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?
> 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
> 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.
> ----- Original Message -----
> From: email@example.com
> 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.
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> * http://www.ats.ucla.edu/stat/stata/
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