Residualization: justification,properties and application

Although it is usual to find collinearity in econometric models, it is commonly disregarded. An extended solution is to eliminate the variable causing the problem but, in some cases, this decision can affect the goal of the research. Alternatively, residualization not only allows mitigation of collinearity, but it also provides an alternative interpretation of the coefficients isolating the effect of the residualized variable. This paper fully develops the residualization procedure and justifies its application not only for dealing with multicollinearity but also for separating the individual effects of the regressor variables. This contribution is illustrated by two econometric models with financial and ecological data, although it can also be extended to many different fields.     

Presenting a new defamilization and familization framework for investigating the residualization of old‐age income security measures—The case study of Hong Kong

Familization and defamilization studies are increasingly seen as an important component of welfare research. They are concerned with the threats to the welfare of individuals caused by involuntary participation in the unwanted family relationship. Moreover, they address the idea that governments have the potential to reduce these threats through the provision of welfare measures. This article contributes to the familization and defamilizaion studies with the focus on the link between these studies and the studies of residualization strategies. It carries out three analytical tasks. The first is to present a new defamilization and familization framework. The second is to demonstrate the usefulness of this framework in analyzing the problem of employing the residualization strategies to reform the old‐age income security system. Our focus is particularly on the insufficient sensitivity of these strategies to women's (and men's) diverse preferences relating to ways of organizing their family life. The third is to demonstrate the empirical significance of this framework. To meet this objective, we apply the framework to the investigation of two old‐age income security measures in Hong Kong—the Mandatory Provident Fund and the Comprehensive Social Security Assistance scheme.