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  • Level level or log level

    If my dependent variable is "change in ln (variable)" and independent variable are in levels, is the model still level-level? Also, could you please tell me the unit of dependent variable for the interpretation. Thanks much!

  • #2
    See here: https://kenbenoit.net/assets/courses...logmodels2.pdf
    And in 1,000s of other sources that Google pops out when you type "log transformation in Econometrics".
    Best, Sergiy

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    • #3
      Also, be really sure that it makes sense to have a change dv rather than a level dv. In the change representation, you're explaining changes in the rate of change with is fine if that is what you want, but that is very different than explaining changes in the level of the original variable.

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      • #4
        Thank you, I kind of know the basics of log level, and level-level transformations, I am just a little stuck on whether "change in log variable" as a dependent variable and level as independent variable is a log level transformation? So in that case, we multiply the variable by 100, and the unit is still percentage?

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