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From | Raymond Lim <rl2240@columbia.edu> |
To | statalist@hsphsun2.harvard.edu |
Subject | st: logit transformation of RHS variable |
Date | Wed, 4 Jan 2012 18:21:30 -0500 |
Hello Statalisters, I have an independent variable that I believe that needs to be transformed because it's bounded between 0 and 1, and it's easier to go from 0 to .10 than say .80 to .90. My question is, can I use a logit transformation on this RHS variable (new_x = x / (1 - x)? Or are logits usually for LHS variables only? Some alternatives may be 1. Add a quadratic term, but this doesn't get the S-shape representing "easier to go from 0 to .10; harder to go from .80 to .90" 2. Add a lag term to control for value in the previous period (yes, this is panel data). Thanks! -Raymond --- Raymond Lim Research Coordinator Columbia Business School - Finance & Economics Division RL2240@columbia.edu * * 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/