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Reassessing Nonlinearity in the Urban Disadvantage/Violent Crime Relationship: An Example of Methodological Bias From Log Transformation

NCJ Number
204767
Journal
Criminology Volume: 41 Issue: 4 Dated: November 2003 Pages: 1427-1448
Author(s)
Lance Hannon; Peter Knapp
Editor(s)
Robert J. Bursik Jr.
Date Published
November 2003
Length
22 pages
Annotation
This paper examines the inconsistency in nonlinear relationships and interaction effects using log transformation through a review of one substantive issue of criminology, the form of the relationship between neighborhood disadvantage and violent crime.
Abstract
This paper briefly discusses and examines some uses of logarithmic transformation in criminological research and describes both the benefits and drawbacks of employing a logged dependent variable in linear least-squares regression. It is argued that the problems frequently corrected by logarithmic transformation of the dependent variable can and should be corrected by other means when a primary concern of the analyses is the theoretically motivated assessment of nonlinear relationships or interaction effects. To illustrate this, this paper uses demographic and violent crime data for urban neighborhoods and proposes an alternative procedure to log transformation involving the use of weighted least-squares regression, heteroscedasticity consistent standard errors, and diagnostics for influential observations. The potential bias of log transformation for research on nonlinear relationship between neighborhood disadvantage and violent crime is illustrated. However, the analysis is applicable to other areas in sociology and criminology. It is suggested that log transformation is a powerful remedy with powerful side effects deserving of a more thorough justification, as opposed to a quick reference. References and appendix

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