# The Algebra of a Class of Transformations with Applications to Log-Log Models of School Spending

*Paul Rothstein* ()

*Public Finance Review*, 1991, vol. 19, issue 4, 457-465

**Abstract:**
A transformation is defined and algebraic relatconships developed between the least squares coefficients, standard errors, and R 2 in the original and transformed models. This complete analysis is then used to explain the impact on these quantities of different measures of the tax price and dependent variable in log-log school spending models. More generally, it is shown that the different specifications are linked to each other through this transformation so that they have a common fundamental structure. The results should be interpreted in this light. Other applications are described briefly.

**Date:** 1991

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**Persistent link:** https://EconPapers.repec.org/RePEc:sae:pubfin:v:19:y:1991:i:4:p:457-465

**DOI:** 10.1177/109114219101900406

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