Detection of Near-Nulticollinearity through Centered and Noncentered Regression

• DOI: 10.3390/math8060931
• Publication Date: 2020-06-09T08:19:39Z
• Authors: Román Salmerón Gómez; Catalina García G...; José García Pérez
• Keywords: Variance Inflation Factor; Regression diagnostic

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