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From | David Hoaglin <dchoaglin@gmail.com> |
To | statalist@hsphsun2.harvard.edu |
Subject | Re: st: Using natural logs on RHS of maximum likelihood models |
Date | Wed, 27 Mar 2013 07:31:29 -0400 |
Jay, I would say "one idea," rather than "the idea." Even if the data contain no points of high leverage (which may or may not exert disproportionate influence), a transformation of an RHS variable may remove nonlinearity in its contribution to the model. Sometimes a transformation both reduces the leverage of high-leverage points and removes nonlinearity. David Hoaglin On Wed, Mar 27, 2013 at 12:41 AM, JVerkuilen (Gmail) <jvverkuilen@gmail.com> wrote: > > Anyway, the idea behind log-transforming an RHS variable would be to > reduce high leverage points induced by a long right tailed > distribution such as income, wage, or something like that. It poses no > in principle problems but of course a log-transformed variable is not > the same as the oroginal variable. * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/faqs/resources/statalist-faq/ * http://www.ats.ucla.edu/stat/stata/