Units of Measurement and the Inverse Hyperbolic Sine Transformation

Publikation: Working paperForskning

Standard

Units of Measurement and the Inverse Hyperbolic Sine Transformation. / Aïhounton, Ghislain B. D.; Henningsen, Arne.

Department of Food and Resource Economics, University of Copenhagen, 2019.

Publikation: Working paperForskning

Harvard

Aïhounton, GBD & Henningsen, A 2019 'Units of Measurement and the Inverse Hyperbolic Sine Transformation' Department of Food and Resource Economics, University of Copenhagen.

APA

Aïhounton, G. B. D., & Henningsen, A. (2019). Units of Measurement and the Inverse Hyperbolic Sine Transformation. Department of Food and Resource Economics, University of Copenhagen. IFRO Working Paper , Nr. 2019/10

Vancouver

Aïhounton GBD, Henningsen A. Units of Measurement and the Inverse Hyperbolic Sine Transformation. Department of Food and Resource Economics, University of Copenhagen. 2019.

Author

Aïhounton, Ghislain B. D. ; Henningsen, Arne. / Units of Measurement and the Inverse Hyperbolic Sine Transformation. Department of Food and Resource Economics, University of Copenhagen, 2019. (IFRO Working Paper ; Nr. 2019/10).

Bibtex

@techreport{d4a26f38c42a4fb688fca57516d391d4,
title = "Units of Measurement and the Inverse Hyperbolic Sine Transformation",
abstract = "The inverse hyperbolic sine (IHS) transformation is frequently applied in econometric studies to transform right-skewed variables that include zero or negative values. We confirm a previous study that shows that regression results can largely depend on the units of measurement of IHS-transformed variables. Hence, arbitrary choices regarding the units of measurement for these variables can have a considerable effect on recommendations for policies or business decisions. In order to address this problem, we suggest a procedure for choosing units of measurement for IHS-transformed variables. A Monte Carlo simulation assesses this procedure under various scenarios and a replication of the study by Bellemare and Wichman (2019) illustrates the relevance and applicability of our suggested procedure.",
author = "A{\"i}hounton, {Ghislain B. D.} and Arne Henningsen",
year = "2019",
language = "English",
series = "IFRO Working Paper",
number = "2019/10",
publisher = "Department of Food and Resource Economics, University of Copenhagen",
type = "WorkingPaper",
institution = "Department of Food and Resource Economics, University of Copenhagen",

}

RIS

TY - UNPB

T1 - Units of Measurement and the Inverse Hyperbolic Sine Transformation

AU - Aïhounton, Ghislain B. D.

AU - Henningsen, Arne

PY - 2019

Y1 - 2019

N2 - The inverse hyperbolic sine (IHS) transformation is frequently applied in econometric studies to transform right-skewed variables that include zero or negative values. We confirm a previous study that shows that regression results can largely depend on the units of measurement of IHS-transformed variables. Hence, arbitrary choices regarding the units of measurement for these variables can have a considerable effect on recommendations for policies or business decisions. In order to address this problem, we suggest a procedure for choosing units of measurement for IHS-transformed variables. A Monte Carlo simulation assesses this procedure under various scenarios and a replication of the study by Bellemare and Wichman (2019) illustrates the relevance and applicability of our suggested procedure.

AB - The inverse hyperbolic sine (IHS) transformation is frequently applied in econometric studies to transform right-skewed variables that include zero or negative values. We confirm a previous study that shows that regression results can largely depend on the units of measurement of IHS-transformed variables. Hence, arbitrary choices regarding the units of measurement for these variables can have a considerable effect on recommendations for policies or business decisions. In order to address this problem, we suggest a procedure for choosing units of measurement for IHS-transformed variables. A Monte Carlo simulation assesses this procedure under various scenarios and a replication of the study by Bellemare and Wichman (2019) illustrates the relevance and applicability of our suggested procedure.

M3 - Working paper

T3 - IFRO Working Paper

BT - Units of Measurement and the Inverse Hyperbolic Sine Transformation

PB - Department of Food and Resource Economics, University of Copenhagen

ER -

ID: 232298838