Penalized regression methods—ridge (Hoerl & Kennard, 1970), LASSO (Tibshirani, 1996), elastic net (Zou & Hastie, 2005)—implicitly address multicollinearity by shrinking coefficients toward zero or by selecting a subset of variables. Bayesian shrinkage (Gelman et al., 2014) provides an alternative probabilistic framework, allowing posterior inference on coefficient uncertainty even when collinearity is severe. However, most comparative studies focus on prediction accuracy rather than on the diagnostic role of VIFs (Huang et al., 2021).
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