The Box-Cox Transformation: Power Invariance and a New Interpretation

We Show That a Box-Cox Transformation on the Dependent Variable of Linear Regression Models Is Invariant to Power Transformations of That Variable Even Without the Presence of a Regression Constant And, Consequently, Can Sometimes Be Interpreted As a Simple Power Transformation the Estimation of Which Will Then Admit of a Non-Degenerate Solution.

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Year of publication:	1988
Authors:	Gaudry, M. ; Laferriere, R.
Institutions:	Département de Sciences Économiques, Université de Montréal
Subject:	Statistics \| Uncertainty

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Series:	Cahiers de recherche.
Type of publication:	Book / Working Paper
Notes:	3 pages long. pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005353235