Using “shares” vs. “log of shares” in fixed-effect estimations
AbstractThis 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, a logarithmic transformation of shares has methodological merits compared to the use of shares defined as mere ratios.
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Bibliographic InfoArticle provided by Economics and Econometrics Research Institute (EERI), Brussels in its journal Journal of Economics and Econometrics.
Volume (Year): 54 (2011)
Issue (Month): 1 ()
Scale dependency; consistency; spurious significance.;
Other versions of this item:
- Gerdes, Christer, 2010. "Using "Shares" vs. "Log of Shares" in Fixed-Effect Estimations," IZA Discussion Papers 5171, Institute for the Study of Labor (IZA).
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
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- Michaela Trax & Stephan Brunow & Jens Suedekum, 2012.
"Cultural diversity and plant-level productivity,"
CReAM Discussion Paper Series
1223, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Michaela Trax & Stephan Brunow & Jens Suedekum, 2012. "Cultural diversity and plant‐level productivity," Norface Discussion Paper Series 2012029, Norface Research Programme on Migration, Department of Economics, University College London.
- Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2013. "Cultural diversity and plant-level productivity," DICE Discussion Papers 119, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
- Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2012. "Cultural Diversity and Plant‐Level Productivity," IZA Discussion Papers 6845, Institute for the Study of Labor (IZA).
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