IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/0066.html
   My bibliography  Save this paper

Detecting and Assessing the Problems Caused by Multi-Collinearity: A Useof the Singular-Value Decomposition

Author

Listed:
  • David A. Belsley
  • Virginia Klema

Abstract

This paper presents a means for detecting the presence of multicollinearity and for assessing the damage that such collinearity may cause estimated coefficients in the standard linear regression model. The means of analysis is the singular value decomposition, a numerical analytic device that directly exposes both the conditioning of the data matrix X and the linear dependencies that may exist among its columns. The same information is employed in the second part of the paper to determine the extent to which each regression coefficient is being adversely affected by each linear relation among the columns of X that lead to its ill conditioning.

Suggested Citation

  • David A. Belsley & Virginia Klema, 1974. "Detecting and Assessing the Problems Caused by Multi-Collinearity: A Useof the Singular-Value Decomposition," NBER Working Papers 0066, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:0066
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w0066.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David A. Belsley, 1974. "Estimation of Systems of Simultaneous Equations, and Computational Specifications of GREMLIN," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 3, number 4, pages 551-614, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David A. Belsley, 1976. "Multicollinearity: Diagnosing its Presence and Assessing the Potential Damage It Causes Least Squares Estimation," NBER Working Papers 0154, National Bureau of Economic Research, Inc.
    2. Irene Aldridge & Payton Martin, 2022. "ESG In Corporate Filings: An AI Perspective," Papers 2212.00018, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David A. Belsley, 1976. "Multicollinearity: Diagnosing its Presence and Assessing the Potential Damage It Causes Least Squares Estimation," NBER Working Papers 0154, National Bureau of Economic Research, Inc.
    2. Charles G. Renfro, 2009. "The Practice of Econometric Theory," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-540-75571-5, July-Dece.
    3. H. Myoken & Y. Uchida, 1977. "The generalized ridge estimator and improved adjustments for regression parameters," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(1), pages 113-124, December.
    4. Various, 1975. "Staff Reports on Research Under Way," NBER Chapters, in: Understanding Economic Change, pages 9-120, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:0066. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.