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st: RE: model for fractional data with panel data

From   "Nick Cox" <>
To   <>
Subject   st: RE: model for fractional data with panel data
Date   Tue, 6 Nov 2007 17:35:53 -0000

The fact that a logarithm may be negative should not worry you one bit. 
The fact that log 0 is indeterminate should worry you a lot if you have 
exact zeros in your data. What to do when you have 0 and wish to take
logarithms is one of the most frequently discussed problems on this


Ilaria Tucci

Another question: Is that right that is not possible to transform the
dependent variable in logarithmic form and then apply the related panel
data models, since the logarithm of a variable between 0 and 1, varies
between -infinite and 0, and thus it does no make sense to perform
analysis on such a variable?

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