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© 2020. This work is licensed under http://creativecommons.org/licenses/by/3.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.

Abstract

This paper analyzes the diagnostic of near-multicollinearity in a multiple linear regression from auxiliary centered (with intercept) and noncentered (without intercept) regressions. From these auxiliary regressions, the centered and noncentered variance inflation factors (VIFs) are calculated. An expression is also presented that relates both of them. In addition, this paper analyzes why the VIF is not able to detect the relation between the intercept and the rest of the independent variables of an econometric model. At the same time, an analysis is also provided to determine how the auxiliary regression applied to calculate the VIF can be useful to detect this kind of multicollinearity.

Details

Title
Detection of Near-Nulticollinearity through Centered and Noncentered Regression
Author
Román Salmerón Gómez  VIAFID ORCID Logo  ; Catalina García García  VIAFID ORCID Logo  ; José García Pérez
First page
931
Publication year
2020
Publication date
2020
Publisher
MDPI AG
e-ISSN
22277390
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2411943767
Copyright
© 2020. This work is licensed under http://creativecommons.org/licenses/by/3.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.