Table II

Muliticollinearity diagnostics

 Variance inflation factorsToleranceR2
Legislative constraints1.200.83100.1690
Economic development1.360.73410.2659
Economic growth1.100.90670.0933
Exports1.340.74800.2520
Budget deficit1.250.79740.2026
Government consumption1.360.73510.2649
IMF participation1.050.94910.0509
Mean variance inflation factors1.24  
 EigenvaluesCondition index 
15.15471.0000 
21.10262.1622 
30.64552.8258 
40.44653.3979 
50.44013.4226 
60.12516.4197 
70.07728.1707 
80.008324.9029 
Condition number 24.9029 
Eigenvalues and condition index computed from the scaled raw SSCP with an intercept 
Det (correlation matrix) 0.470 

Note: A general rule of thumb: a serious multicollinearity problem is suspected if the mean of all the variance inflation factors is considerably larger than 10, if R2 is greater than 0.80 or if condition number (derived from the eigenvalue) exceeds 1,000

[ViewLarge]
This Feature Is Available To Subscribers Only

or Create an Account

Close subscription notice
Close access options