logdifferenced
Logdifferenced is a term used in time series analysis to describe a transformation applied to a series. It involves taking the natural logarithm of the series and then computing the difference between consecutive logged observations. This transformation is often employed to stabilize the variance of a time series and to make it stationary, meaning its statistical properties like mean and variance do not change over time.
The process can be represented mathematically. If Y_t is the original time series at time t, the
Logdifferencing is particularly useful when a time series exhibits exponential growth or a trend that increases