Abstract
We introduce the inverse hyperbolic sine transformation to health services research. The IHS transformation is unique because it is applicable in regressions where the dependent variable to be transformed may be positive, zero, or negative. In contrast, the most frequently used Box-Cox family of transformations is applicable only when the dependent variable is non-negative (or strictly positive in the special case of log transformation). We apply the IHS transformation to examine the economic benefits of mental health treatment for individuals with depression, where over half of the observations of the dependent variable are negative or zero.
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Zhang, M., Fortney, J.C., Tilford, J.M. et al. An Application of the Inverse Hyperbolic Sine Transformation—A Note. Health Services & Outcomes Research Methodology 1, 165–171 (2000). https://doi.org/10.1023/A:1012593022758
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DOI: https://doi.org/10.1023/A:1012593022758