The inverse hyperbolic sine transformation and retransformed marginal effects

Edward Norton

Stata Journal, 2022, vol. 22, issue 3, 702-712

Abstract: In this article, I show how to calculate consistent marginal effects on the original scale of the outcome variable in Stata after estimating a linear regression with a dependent variable that has been transformed by the inverse hyperbolic sine function. The method uses a nonparametric retransformation of the error term and accounts for any scaling of the dependent variable. The inverse hyperbolic sine function is not invariant to scaling, which is known to shift marginal effects between those from an untransformed dependent variable to those of a log- transformed dependent variable, when all observations are positive.

Keywords: inverse hyperbolic sine; transformation; marginal effects (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (16)

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Working Paper: The Inverse Hyperbolic Sine Transformation and Retransformed Marginal Effects (2022)
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DOI: 10.1177/1536867X221124553

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