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# Re: st: first differences and growth rates

 From Billy Schwartz To statalist@hsphsun2.harvard.edu Subject Re: st: first differences and growth rates Date Fri, 5 Aug 2011 15:43:08 -0400

```Why not just make everything in terms of growth rates?

On Fri, Aug 5, 2011 at 12:19 PM, Merijn Groenenboom
<m.groenenboom@students.uu.nl> wrote:
>
> However, since I will put all the results of the variables in the same
> table, I would like to know how I can compare the growth rates with
> the first differences of the other variables. Are the results
> comparable? Otherwise I have to remove the variable with the growth
> rates out of the regression
>
> MerijnG
>
> 2011/8/5 Billy Schwartz <wkschwartz@gmail.com>:
> > You transform to first differences when you think there's serial
> > correlation. If the growth rate could be serially correlated then
> > you'd have to transform it too.
> >
> >
> > On Fri, Aug 5, 2011 at 8:37 AM, Merijn Groenenboom
> > <m.groenenboom@students.uu.nl> wrote:
> >>
> >> Dear statalisters,
> >>
> >> In my regression I use a lot of economic variables. These variables
> >> are absolute numbers. In my regression I use first differences.
> >> However one variables includes growth rates instead of absolute
> >> numbers, therefore I think i do not need to transform these variable
> >> to first differences.
> >> So in that case I all variables are transformed into first
> >> differences, except the variable with the growth rate. Is this
> >> correct?
> >>
> >> Actually I doubt whether this is correct, since the results in Stata
> >> looks a little bit strange.
> >> Does anybody knows, what I can do with this variable? Or can't I use it?
> >>
> >> I hope somebody can help me!
> >>
> >>
> >> MerijnG
> >> *
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> >
>
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*
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```