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The Algebra of a Class of Transformations with Applications to Log-Log Models of School Spending

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  • Paul Rothstein

    (Washington University in St. Louis)

Abstract

A transformation is defined and algebraic relatconships developed between the least squares coefficients, standard errors, and R 2 in the original and transformed models. This complete analysis is then used to explain the impact on these quantities of different measures of the tax price and dependent variable in log-log school spending models. More generally, it is shown that the different specifications are linked to each other through this transformation so that they have a common fundamental structure. The results should be interpreted in this light. Other applications are described briefly.

Suggested Citation

  • Paul Rothstein, 1991. "The Algebra of a Class of Transformations with Applications to Log-Log Models of School Spending," Public Finance Review, , vol. 19(4), pages 457-465, October.
    • Handle: RePEc:sae:pubfin:v:19:y:1991:i:4:p:457-465
    DOI: 10.1177/109114219101900406
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