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# Re: st: first differences and growth rates

 From Merijn Groenenboom To statalist@hsphsun2.harvard.edu Subject Re: st: first differences and growth rates Date Fri, 5 Aug 2011 23:03:32 +0200

```Good point! If the other way around is not possible, that sounds like
the best solution!

Thank you very much!

2011/8/5 Billy Schwartz <wkschwartz@gmail.com>:
> 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:
>>
>> Thanks for your replay.
>> 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!
>> >>
>> >> Thanks in advance,
>> >>
>> >> MerijnG
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>
> *
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>

*
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```