A Note on the Use of a Logarithmic Time Trend

It is shown that parameter estimates in a regression with a logarithmic time trend are not invariant to the choice of the starting point of that time trend. Possible solutions to this problem are discussed and applied to data from a recent article in this Review where a logarithmic time trend was included. It is suggested that the appropriate course is either to estimate the starting date directly or to adopt a functional form invariant to the choice of starting date.


Issue Date:
1984-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/12259
Published in:
Review of Marketing and Agricultural Economics, Volume 52, Number 02
Page range:
91-99
Total Pages:
9




 Record created 2017-04-01, last modified 2017-04-27

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