Hi
I am new to panel data analysis, and I don't seem to be able to forget my
experience when using cross-sectional analysis in terms of avoiding
multicollinearity amongst explanatory variables. All the analysis is
using binary dependent variables.
If I were doing logit I would probably use the collin command and examine
the VIF, tolerance, etc.
If I look at the correlation coefficients for the panel dataset (6 panels)
they are very high for some explanatory variables, but then. But there
is obviously some collinearity between the RHS variables because when I
put one variable in particular in the model, it affects the prob values,
SEs and coefficients.
Am I completely missing a point somewhere????
Is there a test for using with xt models?
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