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Re: st: gologit2


From   lan zhang <[email protected]>
To   [email protected]
Subject   Re: st: gologit2
Date   Thu, 29 Aug 2013 13:53:18 -0400

i count the last five years' M&A occurrence happened domestically in US , the last five years' M&A occurrence happened across-border which is initiated by US. these two have really high correlation. 
is it ok if i still want to use the gologit2 to see their different effects on my dependent variable?



On Aug 28, 2013, at 11:37 PM, Richard Williams <[email protected]> wrote:

> Multi-equation methods like mlogit and gologit can estimate a lot of parameters, hence things like extreme collinearity may cause more grief for them than they do for simpler methods. Having said that, multicollinearity is not inherently fatal; you might have problems with a small data set and no problems at all if you have 100,000 cases.
> 
> I agree with Maarten that you should examine why the multic exists. Maybe you have done something stupid, like include a scale along with the items used to compute the scale. Conversely, if you have a bunch of items that all measure the same concept, you may be able to create a single scale out of them that solves your problems.
> 
> For more ideas on causes/consequences/possible ways of dealing with multicollinearity, see
> 
> http://www3.nd.edu/~rwilliam/xsoc63993/l11.pdf
> 
> At 08:51 AM 8/28/2013, lan zhang wrote:
>> Good morning!
>> i want to conduct a gologit2 model, however, the correlations between my independent variables are very high, almost 0.9. Is it still possible for me to use the gologit2 model?
>> 
>> thanks
>> lan
>> 
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> -------------------------------------------
> Richard Williams, Notre Dame Dept of Sociology
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