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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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Testing for Collinearity using Bayesian Analysis
AU - Assaf, A.G.
AU - Tsionas, M.
N1 - 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/
PY - 2021/8/1
Y1 - 2021/8/1
N2 - 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.
AB - 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.
KW - Bayesian analysis
KW - collinearity
KW - marginal posteriors
U2 - 10.1177/1096348021990841
DO - 10.1177/1096348021990841
M3 - Journal article
VL - 45
SP - 1131
EP - 1141
JO - Journal of Hospitality and Tourism Research
JF - Journal of Hospitality and Tourism Research
SN - 1096-3480
IS - 6
ER -