Hi Statalist. I have a conundrum. I have several variables to which I need to apply the log transformation, such as GDP per capita. However, one of those variables - "cumulative experience" (a count of times a firm has manufactured a nuclear reactor prior to the current observation) - has several instances of zeros in the data. Therefore, I am taking the standard advice of using the inverse hyperbolic sine transformation. For all my other variables, there are no zero-valued observations, so the log transformation works fine. Moreover, the untransformed values of these non-problematic variables are large enough that the approximation asinh(x)=ln(x)+ln(2) is effectively true for my data. So it's purely a stylistic choice (as far as I can tell) as to which one I use.
My question is this: should I apply the same transformation (inverse hyperbolic sine) to all the variables that need to be transformed for the sake of consistency? Or would it be okay if I apply the log transformation to the variables that don't have the issue of zero-valued observations? It would be nice if I could refer to "log GDP per capita" when writing and speaking, since that is such a common transformation.
In case it matters, cumulative experience is a count variable, but it is not the outcome of interest. My outcome of interest is continuous. So that's why I'm not using count methods here. Are there even methods for when count data is on the right-hand side of the regression? Is that an issue?
Related Posts with Is it ok to apply the inverse hyperbolic sine transformation to one variable and the natural log transformation to other variables?
Merging two variables + timeDear Statalist users I have some activity data which asks respondents how much time they spent in p…
Point transparency in spmapHi all, I wonder if its possible control the Point transparency using spmap: Code: spmap relig1 …
while loop error, testing overdispersionHello everyone, i have an issue with a loop. I got this from Hilbe's book "modeling count data". I'm…
Need some helpIm working with a "Encuesta Permanente de Hogares" (EPH) can someone help me with something? …
Looking for a way to do local regressions on data with many zeroesI want to run a nonparametric or semiparametric regression on data which I suspect to be non-linear.…
Subscribe to:
Post Comments (Atom)
0 Response to Is it ok to apply the inverse hyperbolic sine transformation to one variable and the natural log transformation to other variables?
Post a Comment