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Revision : Variance Inflation in Regression
Joint Authors
Source
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-15, 15 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-02-25
Country of Publication
Egypt
No. of Pages
15
Main Subjects
Economics & Business Administration
Business Administration
Abstract EN
Variance Inflation Factors (VIFs) are reexamined as conditioning diagnostics for models with intercept, with and without centering regressors to their means as oft debated.
Conventional VIFs, both centered and uncentered, are flawed.
To rectify matters, two types of orthogonality are noted: vector-space orthogonality and uncorrelated centered regressors.
The key to our approach lies in feasible Reference models encoding orthogonalities of these types.
For models with intercept it is found that (i) uncentered VIFs are not ratios of variances as claimed, owing to infeasible Reference models; (ii) instead they supply informative angles between subspaces of regressors; (iii) centered VIFs are incomplete if not misleading, masking collinearity of regressors with the intercept; and (iv) variance deflation may occur, where ill-conditioned data yield smaller variances than their orthogonal surrogates.
Conventional VIFs have all regressors linked, or none, often untenable in practice.
Beyond these, our models enable the unlinking of regressors that can be unlinked, while preserving dependence among those intrinsically linked.
Moreover, known collinearity indices are extended to encompass angles between subspaces of regressors.
To reaccess ill-conditioned data, we consider case studies ranging from elementary examples to data from the literature.
American Psychological Association (APA)
Jensen, D. R.& Ramirez, D. E.. 2013. Revision : Variance Inflation in Regression. Advances in Decision Sciences،Vol. 2013, no. 2013, pp.1-15.
https://search.emarefa.net/detail/BIM-489170
Modern Language Association (MLA)
Jensen, D. R.& Ramirez, D. E.. Revision : Variance Inflation in Regression. Advances in Decision Sciences No. 2013 (2013), pp.1-15.
https://search.emarefa.net/detail/BIM-489170
American Medical Association (AMA)
Jensen, D. R.& Ramirez, D. E.. Revision : Variance Inflation in Regression. Advances in Decision Sciences. 2013. Vol. 2013, no. 2013, pp.1-15.
https://search.emarefa.net/detail/BIM-489170
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-489170