topic Simultaneous equations in SAS Programming

Simultaneous equations

kelSAS — Tue, 03 Mar 2020 01:03:17 GMT

Two equations

Y = X + V1 + V2 + industry + time

X = Y + V1 + V2 + industry + time

I have an instrument, Z, that can be used to predict X.

I also have about 100 of industry and time dummies. (So I can't use 'model').

How do I go about producing the estimated coefficients for the above two equations?

No STATA, nor SAS seem to have the procedure for simultaneous equations.

Re: Simultaneous equations

PaigeMiller — Tue, 03 Mar 2020 01:25:43 GMT

With simultaneous equations, you need to do a little algebra first to "solve" the simultaneous equations and then fitting a model ought to be easy. And yes you can use dummy variables.

Re: Simultaneous equations

Ksharp — Tue, 03 Mar 2020 03:17:48 GMT

Better post it at Forecast forum since it is about SAS/ETS .

PROC MODEL can't do it ?