The fact that a logarithm may be negative should not worry you one bit.
The fact that log 0 is indeterminate should worry you a lot if you have
exact zeros in your data. What to do when you have 0 and wish to take
logarithms is one of the most frequently discussed problems on this
list.
Nick
[email protected]
Ilaria Tucci
Another question: Is that right that is not possible to transform the
dependent variable in logarithmic form and then apply the related panel
data models, since the logarithm of a variable between 0 and 1, varies
between -infinite and 0, and thus it does no make sense to perform
analysis on such a variable?
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