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Multicollinearity Caused by Specification Errors
Author(s) -
Fabrycy Mark Z.
Publication year - 1975
Publication title -
journal of the royal statistical society: series c (applied statistics)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.205
H-Index - 72
eISSN - 1467-9876
pISSN - 0035-9254
DOI - 10.2307/2346572
Subject(s) - multicollinearity , econometrics , computer science , statistics , mathematics , regression analysis
Summary The advantages of using linear least squares regressions induce us to adopt functions which are linear in parameters. Often this imposes unrealistically rigid constraints which may create multicollinearity. Using more realistic non‐linear forms and non‐linear least squares regressions is likely to overcome this problem as shown in a study of a production function.