Dear All,
I have a GLM, and one of my independent variables is skewed (income). Income has generally a log-normal distribution.
I was thinking not to log, as I want to calculate some marginal effects after the GLM. In case I log the interpretation is a bit different. Given that the majority of the literature uses log when using income as a continuous variable, is it a mistake to avoid using logarithm?
To my knowledge, there is no assumption on the distribution of the independent variables, so the only thing that changes is the magnitude of the coefficient. Do you agree?
Thank you.
I have a GLM, and one of my independent variables is skewed (income). Income has generally a log-normal distribution.
I was thinking not to log, as I want to calculate some marginal effects after the GLM. In case I log the interpretation is a bit different. Given that the majority of the literature uses log when using income as a continuous variable, is it a mistake to avoid using logarithm?
To my knowledge, there is no assumption on the distribution of the independent variables, so the only thing that changes is the magnitude of the coefficient. Do you agree?
Thank you.
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