Date: Nov 27, 2012 7:06 PM
Subject: Here's how I did logs ...
In your previous post, you said
"[the] underlying regression is c on (u',u'^2), where u' = u/(1+u)."
Now are you saying that the underlying regression was not that,
but was ln(c) on (u',u'^2), where u' = ln(u/(1+u^2)) ?
Sorry for the earlier reference without logs - at the time I typed it
I was assuming logs to be understood.
So the way I did logs was as follows;
c on (u',u'^2)
where u' = log( $u / ( 1 + $u ) )
u'^2 = ( log( $u / ( 1 + $u ) ) )^2
(I was going "by analogy", i.e. to square u', whatever it is. )
So, please confirm if:
1) you want logs or not
2) if so, is the above correct? (If not, then what?)