log log model

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nargt
Posts: 2
Joined: Mon Mar 16, 2009 5:31 pm

log log model

Postby nargt » Mon Mar 16, 2009 8:51 pm

I plan to use log-log model to process my regression
ln(wage percent change)=a+b*experience+c*education+u
However, the wage percentage would be negative in the data set some time.
Is that means I cannot use log-log model? Because the number above the base should always be positive in common sense. Right?
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startz
Non-normality and collinearity are NOT problems!
Posts: 3775
Joined: Wed Sep 17, 2008 2:25 pm

Re: log log model

Postby startz » Tue Mar 17, 2009 4:31 am

nargt wrote:I plan to use log-log model to process my regression
ln(wage percent change)=a+b*experience+c*education+u
However, the wage percentage would be negative in the data set some time.
Is that means I cannot use log-log model? Because the number above the base should always be positive in common sense. Right?

The usual model would be log(w_t) - log(w_(t-1)).
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