I am applying logs to two variables:
Code:
gen In_Arg_X_Bra=ln(Arg_X_Bra+1) gen In_Chn_X_LAC=ln(Chn_X_LAC+1)
Code:
pwcorr In_Arg_X_Bra In_Chn_X_LAC,sig
How is this possible? Could this be related to the fact that I am using ln(X+1) as a way of getting around the impossibility of calculating ln(X) when X = 0? I have many 0 values due to zero trade between countries. In that case, I welcome any suggestions.
Thanks a lot,
Giuliana.
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