Hello,
night falls over germany and my regression model leaks linearity between the dependent VAR and the independent VAR. That is not suprising, because the dependent VAR is a scale and some of the independet VARs are dummies.
Literature suggests a transformation. So that nonlinear relations can be converted to linear relations.
The Nonlinear least-squares estimation (code nl with the preprogrammed expressions) doesn't help. Is this wrong? How can the problem be solved?
night falls over germany and my regression model leaks linearity between the dependent VAR and the independent VAR. That is not suprising, because the dependent VAR is a scale and some of the independet VARs are dummies.
Literature suggests a transformation. So that nonlinear relations can be converted to linear relations.
The Nonlinear least-squares estimation (code nl with the preprogrammed expressions) doesn't help. Is this wrong? How can the problem be solved?
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