VIF analysis in Panel data

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khor1984
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VIF analysis in Panel data

Postby khor1984 » Mon Jul 02, 2012 11:15 pm

HI,

I tried to test multicolinearity for my panel data. Unfortunately, i am not able to find the button for VIF in EVIEW 7.

May i know if the function for VIF analysis is not available in panel data analysis? If it is so, is there any other test that can use to test multicolinearity?

Thanks..

startz
Non-normality and collinearity are NOT problems!
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Re: VIF analysis in Panel data

Postby startz » Tue Jul 03, 2012 5:43 am

Out of curiuosity, why do you want to test for multicollinearity?

EViews Gareth
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Re: VIF analysis in Panel data

Postby EViews Gareth » Tue Jul 03, 2012 7:44 am

VIF is not available for panels, nor is any other multicolinearity statistic.
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khor1984
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Re: VIF analysis in Panel data

Postby khor1984 » Tue Jul 03, 2012 11:29 pm

The reason i test for multicollinearity is to check whether there is correlation between my variables.. is there any test that i can use for testing multicollinearity in panel data? or, we are assuming no multicollinearity in panel data?

startz
Non-normality and collinearity are NOT problems!
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Re: VIF analysis in Panel data

Postby startz » Wed Jul 04, 2012 6:57 am

khor1984 wrote:The reason i test for multicollinearity is to check whether there is correlation between my variables.. is there any test that i can use for testing multicollinearity in panel data? or, we are assuming no multicollinearity in panel data?

Why do you care whether there is correlation between your variables? There almost certainly is correlation, but that's what OLS is built to sort out.

yasir
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Re: VIF analysis in Panel data

Postby yasir » Wed Jul 04, 2012 10:10 pm

I just want to say something on Gareth's comment. You said none of the tests for multicollinearity is included in Eviews. But I have been able to use the VIF for panel data. I estimate an equation, give the equation a name and then type "eq01.varinf" and it gives me the varinace inflation factor both centered and uncentered (if constant is included). Isn't that a test for multicollinearity?

EViews Gareth
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Re: VIF analysis in Panel data

Postby EViews Gareth » Wed Jul 04, 2012 10:27 pm

ok, VIFs shouldn't be available for panel equations :D
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Cabinho
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Re: VIF analysis in Panel data

Postby Cabinho » Mon Jun 10, 2013 5:18 pm

This is probably not set in stone but can somebody explain what is the rule of thumb for uncentered and centered VIF in cross sectional data?

franciscoA
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Re: VIF analysis in Panel data

Postby franciscoA » Wed Nov 27, 2013 1:11 pm

Can you explain a little bit this sentence. Is multcollinearity irrelevant in panel equations?
EViews Gareth wrote:ok, VIFs shouldn't be available for panel equations :D

EViews Gareth
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Re: VIF analysis in Panel data

Postby EViews Gareth » Wed Nov 27, 2013 1:13 pm

EViews doesn't offer VIF analysis for panel data. That's all that statement meant.
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franciscoA
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Re: VIF analysis in Panel data

Postby franciscoA » Wed Nov 27, 2013 1:23 pm

Thank you. Can you explain why? Is Eviews planning to include this test or any other tests related to multicollinearity for panel in the future? What would you recommend if I want to consider multicollinearity in the analysis I'm performing using EViews?
EViews Gareth wrote:EViews doesn't offer VIF analysis for panel data. That's all that statement meant.

EViews Gareth
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Re: VIF analysis in Panel data

Postby EViews Gareth » Wed Nov 27, 2013 1:24 pm

There was no particular reason why. The computation of VIF in panels are slightly different, that's all.
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franciscoA
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Re: VIF analysis in Panel data

Postby franciscoA » Wed Nov 27, 2013 1:33 pm

No plans for the future?
EViews Gareth wrote:There was no particular reason why. The computation of VIF in panels are slightly different, that's all.

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Re: VIF analysis in Panel data

Postby EViews Gareth » Wed Nov 27, 2013 1:43 pm

Not currently.
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saizal87
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Re: VIF analysis in Panel data

Postby saizal87 » Tue Mar 24, 2015 11:48 pm

You can actually test for multicollinearity based on VIF on panel data. lets say the name of your equation is eq01, so type "eq01.varinf" and then click enter. then you will get centered (with constant) vif and uncentered (without constant) vif. Keep in mind, if your equation dont have constant, then you will only get the uncentered.


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