Using “shares” vs. “log of shares” in fixed-effect estimations

Christer Gerdes

Journal of Economics and Econometrics, 2011, vol. 54, issue 1, 1-7

Abstract: 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.

Keywords: Scale dependency, consistency; spurious significance. (search for similar items in EconPapers)
JEL-codes: C23 J10 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Using "Shares" vs. "Log of Shares" in Fixed-Effect Estimations (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eei:journl:v:54:y:2011:i:1:p:1-7

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