Folks,
I have a dependent variable which is 3 possible trade policy stances.
(status quo, liberalize or increase protection) for 40 countries for 30
years each.
The independent variables are alternate forms of crisis and a political
variable for government change. The govt change variable is
statistically significant- the crisis variables are not.
The issue with a referee is that maybe crisis is causing the government
change.
I have dropped govt change , and the crisis variables do not become
significant.
I estimated a logit model of govt change using the crisis variables as
independent variables and carried out an F test to determine
collinaerity
Fk-2,n-k+1= [R squared/(k-2)]/ [1-R squared/(n-k+1)
Where k= numberof explanatory variables including intercept.
My questions are 1) is this sufficient under a multinomial framework and
2) are there better altenatives I should investigate.
Any feedback will be much appreciated!
Thanks
Ravi
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