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From |
Nick Winter <njgwinter@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: What is the effect of centering on marginal effects? |

Date |
Fri, 03 Aug 2012 09:47:57 -0400 |

Indeed.

I've always enjoyed Goldberger's take on the "problem" of multicolinearity:

On 8/3/2012 8:13 AM, William Hauser wrote:

Dear all, I'm fairly confident that mean centering does nothing to resolve collinearity. I believe it does fool some of the diagnostic tools though and that's probably why the belief that it somehow solves the problem persists. Mean centering simply shifts the collinearity onto the intercept term. Mean centering adds no new information to the model and that's the problem - the data lack the necessary information for the model to partial out the effects in a precise and stable manner. Perhaps this is effect is different for interaction terms, but I fail to see how that's the case. Collinearity means the independent effects of the collinear variables cannot be precisely estimated. The point of interaction terms is that they be analyzed jointly anyway. The use of the margins and marginsplot commands accomplish this with such ease (and polish) that I would heartily recommend their use. Will * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

* * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**Follow-Ups**:**RE: st: What is the effect of centering on marginal effects?***From:*"Swanquist, Quinn Thomas" <qswanqui@utk.edu>

**References**:**Re: st: What is the effect of centering on marginal effects?***From:*William Hauser <whauseriii@gmail.com>

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