An inverse hyperbolic sine transformation is:
IHS = log(z + sqrt(z^z + 1))
It is an alternative to log transformations when some of
the variables take on zero or negative values and as
an alternative to the Box-Cox when variables are zero or
negative.
See, for example:
Layton, David F, 2001. "Alternative Approaches for Modeling
Concave Willingness to Pay Functions in Conjoint Valuation,"
American Journalof Agricultural Economics, vol. 83(5), 1314-20.
Burbidge, John B., Lonnie Magee and A. Leslie Robb. 1988 "Alternative
Transformations to Handle Extreme Values of the Dependent Variable."
Journal of the American Statistical Association, vol. 83, 123-127.
Scott
----- Original Message -----
From: [email protected]
Date: Wednesday, March 30, 2005 1:40 pm
Subject: st: how to use inverse hyperbolic sine function
> Dear users,
>
> I need to use inverse hyperbolic sine function to transform my
> dependentvariables in a regression, which, honestly, I don't
> understand very much.
> I failed to find the relevant commands to perform this technique
> in Stata
> 7.0. Does anybody have a relevant program which I can use as a
> reference,and have suggestions about interpreting the coefficient
> for varaibles like
> gender? Thanks a lot.
>
>
>
> Ying
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