Dear All,
Thanks very much for your helpful hints. One thing remains unclear to
me. I thought (perhaps wrongly) that one problem with
multicollinearity is that if y1 and y2 are highly correlated (e.g.,
0.9), then their coefficient estimates in regression can get
"artificially" alternate signs (e.g., + and - or vice versa). To me is
not clear yet whether you suggest that Stata would not suffer from
this problem or whether I should orthogonalize in this case.
Any furhter thoughts would be truly appreciated.
Regards,
Erasmo
On 8/17/08, SR Millis <[email protected]> wrote:
> In some case, one way to deal with collinearity between an interaction and its terms is to mean center the variables.
>
> SR Millis
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