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From |
David Greenberg <dg4@nyu.edu> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: Question about the use of ratio variables |

Date |
Mon, 9 Jul 2012 23:09:51 -0400 |

Glen Firebaugh published several papers on this topic in Sociology journals. - David Greenberg, Sociology Department, NYU On Mon, Jul 9, 2012 at 10:43 PM, Fernando Rios Avila <f.rios.a@gmail.com> wrote: > I think your problem is similar to the division bias issue in Labor economics. > I suggest you to look for the following paper: > > The Relationship between Wages and Weekly Hours of Work: The Role of > Division Bias > > George J. Borjas > The Journal of Human Resources > Vol. 15, No. 3 (Summer, 1980), pp. 409-423 > > It discusses the problem, consequences and some solutions. > > Fernando. > > On Mon, Jul 9, 2012 at 10:20 PM, hsini <hsini92@gmail.com> wrote: >> >> Dear all, >> >> I have a question about the use of ratio variables. >> Is it problematic to have a regression equation like : (Yi/population) = b0+ b1*(Xi/Yi) +b2X2 + error? >> >> Let's say Yi is the number of innovation per region, and Xi is the number of small firm innovation. The ratio variable is a very important measure since in my theory it represents the organizational ecology of the region. I excluded regions with zero innovation. However, I am afraid of any function problem since I have Yi on the both side of the equation. I have read Bradshaw and Radbill (1987) paper discussing the use of ratio variables. It seems to me they were dealing with the ratio is generated by a third variable (Z), which is a bit different from my situation. Any suggestion? >> >> >> Sincerely, >> Hsini Huang >> * >> * For searches and help try: >> * http://www.stata.com/help.cgi?search >> * http://www.stata.com/support/statalist/faq >> * http://www.ats.ucla.edu/stat/stata/ > > * > * For searches and help try: > * http://www.stata.com/help.cgi?search > * http://www.stata.com/support/statalist/faq > * http://www.ats.ucla.edu/stat/stata/ * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**References**:**st: Question about the use of ratio variables***From:*hsini <hsini92@gmail.com>

**Re: st: Question about the use of ratio variables***From:*Fernando Rios Avila <f.rios.a@gmail.com>

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