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log log model

Posted: Mon Mar 16, 2009 8:51 pm
by nargt
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?

Re: log log model

Posted: Tue Mar 17, 2009 4:31 am
by startz
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)).