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st: log of zero


From   Viktor Slavtchev <slavtchev@econ.mpg.de>
To   statalist@hsphsun2.harvard.edu
Subject   st: log of zero
Date   Wed, 02 Jul 2008 11:46:22 +0200

dear stata listers,
I want to estimate production function in logs in order to interpret the coefficients in terms of elasticities. one of the RHS variables has a lot of zero value. in such cases, some people usually add a very small value in order to avoid the problem of 'undefined' log of zero. a similar issue was discussed some time ago among other things and in a quite different context but an interesting alternative suggestion was made (which I can't remember anymore). unfortunately, I was not able to find this particular thread.
in that sence, any suggestions how to deal with the problem would be greatly appreciated
thanks a lot
viktor
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