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Re: st: gologit2


From   Richard Williams <[email protected]>
To   [email protected], [email protected]
Subject   Re: st: gologit2
Date   Thu, 29 Aug 2013 14:37:24 -0500

At 12:53 PM 8/29/2013, lan zhang wrote:
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?

Sorry, I don't know what M&A is or what the rest of your explanation means. In any event, I don't think there is anything special about the fact that you are using gologit2. If the variables were appropriate/inappropriate for an mlogit/ regression/ ologit analysis I imagine the same would be true for gologit. In any event why not just try it and see if it works and if the results make sense?




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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-------------------------------------------
Richard Williams, Notre Dame Dept of Sociology
OFFICE: (574)631-6668, (574)631-6463
HOME:   (574)289-5227
EMAIL:  [email protected]
WWW:    http://www.nd.edu/~rwilliam

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