Re: st: Log transformation of Dependent and Independent Variables

[Chris Rohlfs <car@uchicago.edu>]

alice,

yes, this is a common thing to do.  wage regressions are a good example. 
economists usually take the log of the dependent variable (wages).  and 
then some regressors (such as education) typically enter the equation 
linearly -- including some dummy variables like race or sex dummies. 
while other regressors (such as parents' income) typically enter in log 
form.

chris

On Tue, 6 Sep 2005, ALICE DOBSON wrote:


> Hi Statalisters,
> The dependent variable in my data set is highly dispersed and I intend to 
> take a log transformation. However, there are a few dummy independent 
> variables. Can I simply take a log transformation of the DV and a few 
> dispersed IVs and let the dummy variables and the less dispersed variables 
> remain as they are?
> Best,
> Alice
>
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