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Using “shares” vs. “log of shares” in fixed-effect estimations

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  • Christer Gerdes

Abstract

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, a logarithmic transformation of shares has methodological merits compared to the use of shares defined as mere ratios.

Suggested Citation

  • Christer Gerdes, 2011. "Using “shares” vs. “log of shares” in fixed-effect estimations," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 54(1), pages 1-7.
    • Handle: RePEc:eei:journl:v:54:y:2011:i:1:p:1-7
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    Cited by:

    1. Andersson, Fredrik N.G. & Opper, Sonja & Khalid, Usman, 2018. "Are capitalists green? Firm ownership and provincial CO2 emissions in China," Energy Policy, Elsevier, vol. 123(C), pages 349-359.
    2. Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2015. "Cultural diversity and plant-level productivity," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 85-96.
    3. Azwardi Azwardi & Sukanto Sukanto & Alghifari Mahdi Igamo & Arika Kurniawan, 2021. "Carbon Emissions, Economic Growth, Forest, Agricultural Land and Air Pollution in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 537-542.

    More about this item

    Keywords

    Scale dependency; consistency; spurious significance.;
    All these keywords.

    JEL classification:

    • 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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