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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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DOI: 10.1177/109114219101900406

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