Is multicollinearty not a big issue in panel data?

[Muhammad Khurram]

Hi,

One of the questions that has been bugging me, given that the eviews don't have the VIF option for panel/pooled regression models, I want to ask the experts that in your opinion the multicollinearity isn't a big issue in panel/pooled data? thank you.

Best regards,
Khurram

[startz]

What do you think the problem is with multicollinearity when it's not panel data?

[Muhammad Khurram]

Thank you for your response. As per the book 'Applied Econometrics' by Asterio and Hall , the multicollinearity affects the variances and therefore also estimation precision.

[startz]

True. But multicollinearity is already accounted for in the standard errors that EViews produces.

[Muhammad Khurram]

okay, thank you Sir.

Best regards,
Muhammad Khurram Shabbir