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Re: st: Log transformation of Dependent and Independent Variables


From   Chris Rohlfs <car@uchicago.edu>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: Log transformation of Dependent and Independent Variables
Date   Tue, 6 Sep 2005 19:50:05 -0500 (CDT)

alice,

yes, this is a common thing to do. wage regressions are a good example. economists usually take the log of the dependent variable (wages). and then some regressors (such as education) typically enter the equation linearly -- including some dummy variables like race or sex dummies. while other regressors (such as parents' income) typically enter in log form.

chris

On Tue, 6 Sep 2005, ALICE DOBSON wrote:


Hi Statalisters,
The dependent variable in my data set is highly dispersed and I intend to take a log transformation. However, there are a few dummy independent variables. Can I simply take a log transformation of the DV and a few dispersed IVs and let the dummy variables and the less dispersed variables remain as they are?
Best,
Alice

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