The LOG transformation computes the natural log. The PSPLINE expansion expands EqRatio into a linear term, EqRatio, and a squared term, EqRatio 2. A linear transformation of CpRatio and a dummy ...

This note explains how to choose between log and linear specification. The note emphasizes the economic interpretation of a log model and how to interpret coefficients in a log regression. The note ...

Log Transformation . The logarithmic transformation is often useful for series that must be greater than zero and that grow exponentially. For example, Figure 2.21 shows a plot of an airline passenger ...