International records / OpenAlex research

On Specification of Almon Distribued Lag Model in the Presence of Multicollinearity

In Almon distributed lag modeling, presence of multicollinearity, choice of appropriate approximating polynomial of suitable degree and choice of optimal truncation lag-length required for the implementation of Almon distributed lag model constitute three major problems confronting Almon distributed lag modeling.Given the fact that the choice of appropriate approximating polynomial of suitable degree and optimal truncation lag-length can significantly reduce problem of multicollinearity in Almon model, we employ variance inflation factor as an alternative but credible criterion to choose an ap…