Notice: On April 23, 2014, Statalist moved from an email list to a forum, based at statalist.org.
[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
st: Spline Regressions and Log-Log Models
From
Thad Daniel Calabrese <[email protected]>
To
[email protected]
Subject
st: Spline Regressions and Log-Log Models
Date
Wed, 19 May 2010 12:05:22 -0400
I've been modeling the relationship between an organization's income and its accumulated wealth. The existing literature has a fairly standard log-log model with income as the DV and wealth as one of the IVs. All variables in the literature are logged.
When I log my wealth variable and graph it against the log of income, the variable's linearity is certainly improved, but it is obviously not perfectly straight (nor did I expect it to be).
The question I have is this: could I attempt to improve the model fit using spline regression? I've only seen splines used on non-transformed (but normalized) independent variables. I assume there must be a reason for that and so it concerns me to try with transformed data.
Thanks.
*
* For searches and help try:
* http://www.stata.com/help.cgi?search
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/