I apologise in advance if this has been posted before. Though I couldn't seem to find a discussion when I searched the forum.
I am using estat vce, corr and it appears that my two main independent variables of interest have a correlation of 0.68.
I realise when using vif a value over 10 is problematic, though I was wondering what the cut off is using estat vce, corr.
Also, in relation to this, models with year or dummies, age and age^2 controls for example would have high correlation as one would imagine.
How does one deal with that sort of collinearity?
Thanks
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