Units of measurement and the inverse hyperbolic sine transformation
Open accessAbstract
Summary: The inverse hyperbolic sine (IHS) transformation is frequently applied in econometric studies to transform right-skewed variables that include zero or negative values. We show that regression results can heavily 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 an empirical illustration shows the relevance and applicability of our suggested procedure.
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In accordance with our findings, it is reported that the parameter z of the inverse hyperbolic sine transformation can substantially affect regression results.
“In accordance with our findings, it is reported that the parameter z of the inverse hyperbolic sine transformation (equation 20) can substantially affect regression results 39 .”
From Efficient neural network models of chemical kinetics using a latent asinh rate transformation (2023) · cites this paper as [39]
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Efficient neural network models of chemical kinetics using a latent asinh rate transformation
Döppel, F. A., & Votsmeier, M. (2023) · Reaction Chemistry & Engineering · doi:10.1039/d3re00212h · Cited by 24 · see citing works
- Authors
- Aihounton, G. B. D., & Henningsen, A.
- Affiliations
- Department of Food and Resource Economics, University of Copenhagen, Rolighedsvej 25, 1958 Frederiksberg C, Denmark
- University of Copenhagen (DK)
- Corresponding author
- Henningsen, Arne
- ORCID
- Henningsen, Arne
- Venue
- The Econometrics Journal
- Publisher
- Oxford University Press (OUP)
- Published
- 2020-10-31
- Volume
- 24
- Issue
- 2
- Pages
- 334-351
- ISSN
- 1368-4221 (ISSN-L)
- 1368-423X
- OpenAlex
- W2999968854
- Cited by
- 28
- References
- 0
- Citations by year
- 2025: 5 · 2024: 5 · 2023: 7 · 2022: 6 · 2021: 3 · 2020: 2
- FWCI
- 3.17
- Type
- journal article
- Language
- en
- Open access
- green
- okonomi.foi.dk
- Licence
- academic.oup.com/journals/pages/open_access/funder_policies/chorus/standard_publication_model (vor)
- Locations
- Econometrics Journal (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Research at the University of Copenhagen (University of Copenhagen) (submittedVersion, other-oa)
- Econstor (Econstor) (submittedVersion)
- Funders
- Ministry of Foreign Affairs of Denmark (14-02KU)
- Topics
- Physical Sciences › Mathematics › Statistics and Probability › Advanced Statistical Methods and Models
- Physical Sciences › Mathematics › Statistics and Probability › Statistical Methods and Applications
- Physical Sciences › Mathematics › Applied Mathematics › Statistical and numerical algorithms
- Keywords
- units of measurement, policy recommendations, business decisions
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