Why not use % change in regression instead of log diff?

Cross Validated Asked by tjaqu787 on December 29, 2021

Given that log difference = percent change why not make the series stationary by just using percent change as the regresor.

a. It’s not an approximation and we can interpret an coefficient as a percent change even with larger changes in the variable.

b. This would also be easier for applying the inverse transformation to get our expected value

Add your own answers!

Related Questions

Linear model selection – Subset, Forward

0  Asked on February 16, 2021 by davud-mursalov


Churn prediction for customers with limited data

0  Asked on February 14, 2021 by ahmet-turul-bayrak


multiple linear regression vs polynomial regression models

0  Asked on February 14, 2021 by gracetam


Ask a Question

Get help from others!

© 2023 All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP