Log-linear Model
Log-Linear Model
Log-Linear Model
In the log-linear model, we predict the natural log of the dependent variable.
When the dependent variable is logged, we are predicting a percent change in Y.
If the independent variable is logged, then we are predicting the expected change in Y in its native unit given a 1 percent increase in X.
If both the independent and dependent variables are logged, then we are predicting a percent change in Y given a percent change in X.
Logged models describe a model where all variables are logged.