LEVEL 07 · 40 MIN
Clone Variables
Separate the signal from its statistical clones.
Your regressors are moving in formation. Detect exact and near clones, identify which coefficients lose precision, and protect the economic question from mechanical variable deletion.
MISSION OBJECTIVES
- Distinguish perfect from imperfect multicollinearity.
- Explain consequences for estimability, precision, and inference.
- Use correlations, auxiliary regressions, and VIF without mechanical cutoffs.
- Relate collinearity evidence to the focal estimand.
- Defend theory-led data, transformation, aggregation, or scope decisions.