Abstract
It is proved that, under certain conditions, the ‘true’ model, from a set of alternative regression specifications involving different transformations of the same dependent variable, is the formulation for which population R 2 is highest. This theorem, which requires assumptions of normality, is proved through the use of Hermite polynomials. The paper contains an appendix listing the major properties of these polynomials.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
