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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.

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File URL: http://www.eeri.eu/documents/jee/JEE_2011_01_01.pdf
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Bibliographic Info

Article provided by Economics and Econometrics Research Institute (EERI), Brussels in its journal Journal of Economics and Econometrics.

Volume (Year): 54 (2011)
Issue (Month): 1 ()
Pages: 1-7

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Handle: RePEc:eei:journl:v:54:y:2011:i:1:p:1-7

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Related research

Keywords: Scale dependency; consistency; spurious significance.;

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Cited by:
  1. 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.

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