Page 1 of 1

collinearity and Heteroscedasticity in bivariate probit mode

Posted: Fri Oct 15, 2010 9:24 am
by momo
Hi, all


I run a bivariate probit regression, and I am not specialized in statistics and I dont know how to check collinearity and Heteroscedasticity in the mentioned model.

and how do I solve it if it exists ?

in fact I use many samples and sometimes it drops a variable for collinearity but when I compress the constant, stata dont drop the mentioned variable.

for example is it usful to use Heteroskedastic probit model
from binary outcomes window, and how to use it.

if I have to run a linear regression to test that how it could be with a two dependent dummy variables.

I tries to run a linear regression just to use vif command and I got the
next results where its low. but can anyone help me to explain the results and what is the limit to determine the numbers.


Variable | VIF 1/VIF
-------------+----------------------
Costsofemp~l | 1.57 0.637600
logemploye~r | 1.50 0.665066
naceav | 1.40 0.713640
inddummy | 1.31 0.764253
affiliate | 1.05 0.947891
Intangible~v | 1.04 0.961732
logage | 1.04 0.965437
auto | 1.02 0.980988
-------------+----------------------
Mean VIF | 1.24

so what do you think

thanks in advance