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Using 'Shares' vs. 'Log of Shares' in Fixed-Effect Estimations
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
2011 (English)In: Journal of Economics and Econometrics, ISSN ISSN 2032-9652 E-ISSN 2032-9660, Vol. 54, no 1, 1-7 p.Article in journal (Refereed) Published
Abstract [en]

This paper looks at potential implications emerging from including "shares" as a control variable in fixed effect estimations. By shares we refer to the ratio of a sum of units over another, such as the share of immigrants in a city or school. As will be shown in this paper, alogarithmic transformation of shares has methodological merits compared to the use of shares defined as mere ratios.

Place, publisher, year, edition, pages
Brussels: EERI Economics and Econometrics Research Institute , 2011. Vol. 54, no 1, 1-7 p.
Keyword [en]
Scale dependency, consistency, spurious significance
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-66370OAI: oai:DiVA.org:su-66370DiVA: diva2:467635
Available from: 2011-12-19 Created: 2011-12-19 Last updated: 2012-01-17Bibliographically approved

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http://www.eeri.eu/documents/jee/JEE_2011_01_01.pdf

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Gerdes, Christer
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