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    Rights statement: The final, definitive version of this article has been published in the Journal, Journal of Hospitality & Tourism Research, 45 (6), 2021, © SAGE Publications Ltd, 2021 by SAGE Publications Ltd at the Journal of Hospitality & Tourism Research page: https://journals.sagepub.com/home/jht on SAGE Journals Online: http://journals.sagepub.com/

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Testing for Collinearity using Bayesian Analysis

Research output: Contribution to journalJournal articlepeer-review

Published
<mark>Journal publication date</mark>1/08/2021
<mark>Journal</mark>Journal of Hospitality and Tourism Research
Issue number6
Volume45
Number of pages11
Pages (from-to)1131-1141
Publication StatusPublished
Early online date12/02/21
<mark>Original language</mark>English

Abstract

Testing for collinearity continues to be a controversial issue in the literature. Multicollinearity detection criteria, such as the variance inflation factor, often fail to detect the true extent of multicollinearity. In this article, we propose utilizing the Bayesian approach as an attractive alternative. Under the Bayesian approach, we recommend comparing the marginal posterior of regression parameters under two different priors. If the difference in the posterior under these two priors is pronounced, one can surmise that collinearity is harmful. The Kolmogorov–Smirnov test can also be used as further evidence to confirm whether the posterior difference is significant.

Bibliographic note

The final, definitive version of this article has been published in the Journal, Journal of Hospitality & Tourism Research, 45 (6), 2021, © SAGE Publications Ltd, 2021 by SAGE Publications Ltd at the Journal of Hospitality & Tourism Research page: https://journals.sagepub.com/home/jht on SAGE Journals Online: http://journals.sagepub.com/