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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Year of publication:	2011
Authors:	Gerdes, Christer
Published in:	Journal of Economics and Econometrics. - Economics and Econometrics Research Institute (EERI). - Vol. 54.2011, 1, p. 1-7
Publisher:	Economics and Econometrics Research Institute (EERI)
Subject:	Scale dependency \| consistency \| spurious significance

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Type of publication:	Article
Language:	English
Classification:	C23 - Models with Panel Data ; J10 - Demographic Economics. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008918482