Using “shares” vs. “log of shares” in fixed-effect estimations
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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Volume (Year): 54 (2011)
Issue (Month): 1 ()
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