Statistical estimation technique for straight-line, linear relationships between two or more variables. A dependent variable is influenced by one or more independent variables in this case. The data values, converted to their logarithms to insure equal percentage changes have equal weight, have a least-squares regression applied. Typical uses of this method are for explaining why the differences in security returns occur due to differences in capitalization, for example. Also known as logarithmic transformation method.
Link to This DefinitionDid you find this definition of LOG-LINEAR LEAST-SQUARES METHOD helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary