zero is not present in my estimation. My variable varies between 0 and
1 with extremes excluded, since my share is the relative employment of
white collar workers in any firm and
there are no firms with only non white collar workers. However the
fact that the logarithmic variable is bounded at 0 worries me. It's
like I am estimating an impact on a variable which is "truncated", but
not in a classical way. It is in this respect that I would like to get
suggestions.
Thank you for your answer
Ilaria
2007/11/6, Nick Cox <[email protected]>:
> 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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