VIF after .xtreg re

[Martijn Aa]

Can somebody explain to me how I use VIF after .xtreg re?

I get the following error:

not appropriate after regress, nocons;
use option uncentered to get uncentered VIFs

When I then put . estat vif, uncentered I get:
estat vif not valid

[Carlo Lazzaro]

Martujn:
welcome to this forum.
You may want to consider -estat vce, corr- after -xtreg,re-.

[Martijn Aa]

Carlo Lazzaro Thank you for your fast reply. I see the correlation matrix now. How do I interpret this to find out if there is multicollinearity?

[Martijn Aa]

Screenshot:

[Carlo Lazzaro]

Martiìjn:
at its face value -0.9084- seems to be the only concerning value.
Obviously, every comment should be read in the light of what each coefficient represents.

[Martijn Aa]

Carlo Lazzaro Why is -0.9084 the only concerning value? What does the matrix tell me about multicollinearity?

[Carlo Lazzaro]

Martijn:
short answer: because it approaches -1.00 (perfect negative correlation).