PanJen: An R package for Ranking Transformations in a Linear Regression

PanJen is an R-package for ranking transformations in linear regressions. It provides users with the ability to explore the relationship between a dependent variable and its independent variables. The package offers an easy and data-driven way to choose a functional form in multiple linear regression models by comparing a range of parametric transformations. The parametric functional forms are benchmarked against each other and a non-parametric transformation. The package allows users to generate plots that show the relation between a covariate and the dependent variable. Furthermore, PanJen will enable users to specify specific functional transformations, driven by a priori and theory-based hypotheses. The package supplies both model fits and plots that allow users to make informed choices on the functional forms in their regression. We show that the ranking in PanJen outperforms the Box-Tidwell transformation, especially in the presence of inefficiency, heteroscedasticity or endogeneity.

Cathrine Ulla Jensen , Toke Emil Panduro
2018-05-21

Supplementary materials

Supplementary materials are available in addition to this article. It can be downloaded at RJ-2018-018.zip

CRAN packages used

PanJen, mgcv

CRAN Task Views implied by cited packages

Bayesian, Econometrics, Environmetrics, SocialSciences

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Citation

For attribution, please cite this work as

Jensen & Panduro, "PanJen: An R package for Ranking Transformations in a Linear Regression", The R Journal, 2018

BibTeX citation

@article{RJ-2018-018,
  author = {Jensen, Cathrine Ulla and Panduro, Toke Emil},
  title = {PanJen: An R package for Ranking Transformations in a Linear Regression},
  journal = {The R Journal},
  year = {2018},
  note = {https://doi.org/10.32614/RJ-2018-018},
  doi = {10.32614/RJ-2018-018},
  volume = {10},
  issue = {1},
  issn = {2073-4859},
  pages = {109-121}
}