OLS · Model refinement

Raw and Log Outcome Scales

A transformation can improve description, but it also changes the meaning of the coefficient.

Page 1 of 7 · Big Picture

The big picture: Raw and Log Outcome Scales

What does the outcome scale mean?

Why a policy analyst should care

Changing the outcome scale changes the estimand and coefficient interpretation, often shifting the question from absolute differences to proportional ones.

Follow the idea from the opening question to a practical decision. These are the conceptual moves this module will develop:

1 Question What does the outcome scale mean?
2 Explore Compare raw and log outcome scales
3 Formalize A log outcome changes interpretation
4 Transfer Explain a spending-scale decision

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