I have two independent variables which have a Pearson correlation coefficient of 0.98.
The two independent variables measure the same underlying construct but only at two different points in time (one is a forecast, the other the actual realization). The VIF is around 25 - however, if I replace one variable with the incremental change to the other variable, I basically get the same information from the coefficients (just a base coeff. and an incremental value), but VIF is around 1 and multicollinearity is gone? Does that automatically mean that the initial regression has no multicollinearity problem?