Multicollinearity in measurement error models

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Gokmen S., Dağalp R., Kilickaplan S.

COMMUNICATIONS IN STATISTICS-THEORY AND METHODS, cilt.51, sa.2, ss.474-485, 2022 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 51 Sayı: 2
  • Basım Tarihi: 2022
  • Doi Numarası: 10.1080/03610926.2020.1750654
  • Dergi Adı: COMMUNICATIONS IN STATISTICS-THEORY AND METHODS
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, Business Source Elite, Business Source Premier, CAB Abstracts, Compendex, Veterinary Science Database, zbMATH, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.474-485
  • Anahtar Kelimeler: Error-prone variables, linear regression, measurement error, multicollinearity, REGRESSION, COLLINEARITY
  • Ankara Üniversitesi Adresli: Hayır

Özet

The multicollinearity and error-prone variables in linear regression models cause problems in parameter estimation in that they both impair the estimation and statistical analysis. Consideration of both problems simultaneously has shown that the error-prone variables mask the multicollinearity. The variance inflation factor has been proven to be the most common diagnostic tool for multicollinearity. This paper theoretically gives valuable information on the variance inflation factor that it decreases as the reliability ratio decreases. The existence of the explanatory variables with measurement error affects the parameter estimation attenuated toward zero and the same time camouflage multicollinearity seriously as if there was no multicollinearity among the explanatory variables. This has been supported by a simulation study with two explanatory variables.