the squared and cubic terms can certainly make something otherwise in the
hull very far from it. think of the functional form: even if these are
pretty highly collinear, a nonzero coefficient could make the functional
form vary very widely.
Gary
On Tue, 29 Apr 2008, Fabrizio Gilardi wrote:
That's what I thought. If two variables are very
similar then it shouldn't
matter. But then why do I get very different results when I run these two
models and counterfactuals?
z.out1 <- zelig(y ~ x1 + x2 + x3 + time, model="logit", data=data)
z.out2 <- zelig(y ~ x1 + x2 + x3 + time + I(time^2) + I(time^3),
model="logit", data=data)
range.x1 <- seq(min(data$x1), max(data$x1), length.out=100)
x.out1 <- setx(z.out1, x1=range.x1)
x.out2 <- setx(z.out2, x1=range.x1)
cfact1 <- whatif(~ x1 + x2 + x3 + time, data=data, cfact=x.out1)
cfact2 <- whatif(~ x1 + x2 + x3 + time + I(time^2) + I(time^3), data=data,
cfact=x.out2)
cfact3 <- whatif(~ x1 + x2 + x3 + time, data=data, cfact=x.out2)
- In cfact1 about 80% of counterfactuals are in the convex hull
- In cfact2 no counterfactual is in the convex hull
- In cfact3 (which is based on the model with time^2 and time^3 but evaluates
the counterfactual without time^2 and time^3) again about 80% of
counterfactuals are in the convex hull
- Adding / dropping the other variables makes no difference. It is really
time^2 and time^3 that matter for the counterfactuals.
What is going on here?
Again, feel free to ignore this message.
Thanks a lot,
fabrizio
On 28 Apr 2008, at 20:03, Gary King wrote:
its not a problem. in fact if 2 variables were
identical, it wouldn't
matter.
Gary
On Mon, 28 Apr 2008, Fabrizio Gilardi wrote:
Does high collinearity (>0.9) have any
consequences on convex hull and
Gower's distance calculations? I'm analyzing a dataset that includes
time, time^2 and time^3 and this seems to be an issue.
I'm not officially part of the class so feel free not to reply.
Thanks a lot,
Fabrizio
---------------------------------------------------------
Fabrizio Gilardi
Weatherhead Center for International Affairs
Harvard University
1737 Cambridge Street
Cambridge, MA 02138 (USA)
Phone +1 617 495 1467
Fax +1 617 495 8292
fgilardi at
wcfia.harvard.edu
www.fabriziogilardi.org
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