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Re: st: About taking log on zero values


From   Maarten Buis <maartenlbuis@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: About taking log on zero values
Date   Thu, 20 Feb 2014 22:08:09 +0100

On Thu, Feb 20, 2014 at 8:42 PM, Daniel Feenberg wrote:
> If the to be logged variable is on the RHS, then can't you put in an
> arbitrary value instead of log(0), and add a dummy variable which is one for
> that case, otherwise zero? Then you have a functional form that encompasses
> missing/non-missing and has a log relation for all non-zero values. The size
> of the arbitrary value won't actually affect the predicted values,
> T-statistics or regression summary statistics such as R**2, so it shouldn't
> be a source of controversy.

That is exactly the solution I proposed earlier
<http://www.stata.com/statalist/archive/2014-02/msg00826.html>, so we
are in agreement.

---------------------------------
Maarten L. Buis
WZB
Reichpietschufer 50
10785 Berlin
Germany

http://www.maartenbuis.nl
---------------------------------
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