Search found 3 matches
- Sat Apr 27, 2013 6:10 am
- Forum: Econometric Discussions
- Topic: Is Multicollinearity important?
- Replies: 4
- Views: 6990
Re: Is Multicollinearity important?
Btw, there is one more thing I wonder about. I found evidence of both trend-, and difference stationarity but when I adjust for trend stationarity (by adding a trend/time variable) I still get high correlation between my explanatory variables, as high as 0,9..! Should I still care about this since I...
- Sat Apr 27, 2013 6:04 am
- Forum: Econometric Discussions
- Topic: Is Multicollinearity important?
- Replies: 4
- Views: 6990
Re: Is Multicollinearity important?
Thanks a lot for your answer!! I want to interpret the parameter so that's an increase in parameter uncertainty I can't afford. Im using a consumer price index in this regression. Since it's elasticities I want to measure Im afraid I have to correct the Multicollinearity so I can know with certainty...
- Fri Apr 26, 2013 5:26 am
- Forum: Econometric Discussions
- Topic: Is Multicollinearity important?
- Replies: 4
- Views: 6990
Is Multicollinearity important?
Hello! I have a question. Im doing a double log regression to find a price-elasticity on which we are gonna base a lot of further calculations on. I found that my material suffers from multicollinearity so I tested for the VIF and it showed a value of 85(!) and R^2=98,9845 when I tested the price-el...
