Why not use % change in regression instead of log diff?

Cross Validated Asked by tjaqu787 on December 29, 2021

Given that log difference = percent change why not make the series stationary by just using percent change as the regresor.

a. It’s not an approximation and we can interpret an coefficient as a percent change even with larger changes in the variable.

b. This would also be easier for applying the inverse transformation to get our expected value

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