Hello,
I'm currently working on an econometric conflict model, where I've taken the natural logarithms of my independent and dependent variables mainly to reduce data skewness. Now I want to add a variable interaction, but I'm not sure if it's interfering and if it's ok too.
My equation has this form:
LogConflict = a * log (Quantities) + b * log (Value) + c * (log (Quantities) * log (Value)) + epsilon
Does it make sense? I hope someone here can help me. I will appreciate it a lot.
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