WARNING: Cannot find a library containing subroutine ...

[ming_ming]

Hello,

I am trying to estimate a equation system using Full Information Maximum Likelihood. Through this process, the following error keep coming out

" WARNING: Cannot find a library containing subroutine LABOR".  Could anyobody please tell me how to fix this? Many thanks.

Below is my code:

data raw_data;

proc import datafile="C:\SAS_estimation\raw_data.xls"
out = raw_data dbms=xls replace; getnames=yes;
run;

data raw_data; set raw_data;

lshare = log(lincome/pgdp);
kshare = log(kincome/pgdp);
ly =log(rpgdp);
ll = log(labor);
lk = log(kpreal);
lh = log(H);
lyl = ly-ll;
run;

proc iml;
yl0 = 0.031018607;
kl0 = 0.051296459;
l0 = 88517.7272;
h0 = 94042.34093;
t_bar = 23.5;

proc model data = raw_data;
parms mu pi sig g_n l_n A g_k l_k GAMMA delta theta;

lshare = -log(1+mu) + log(1-pi) - ((1-sig)/sig)*g_n*t_bar*((time/t_bar)**l_n-1)/l_n+ ((1-sig)/sig)*log((rpgdp/labor)/(A*yl0))-((1-sig)/sig)*log((1-(labor(1)-labor*(1-delta))**(1/theta)*(h-labor)**(-(1-theta)/theta)/GAMMA/labor)/(1-(l0-l0*(1-delta))**(1/theta)*(h0-l0)**(-(1-theta)/theta)/GAMMA/l0));

kshare = -log(1+mu) + log(pi) - ((1-sig)/sig)*g_k*t_bar*((time/t_bar)**l_k-1)/l_k+ ((1-sig)/sig)*log((rpgdp/kpreal)/(A*yl0/kl0));

fit lshare kshare lyl / fiml;
run;

The log window reads:

...

...

101  proc model data = raw_data;
102  parms mu pi sig g_n l_n A g_k l_k GAMMA delta theta;
103
104
105  lshare = -log(1+mu) + log(1-pi) - ((1-sig)/sig)*g_n*t_bar*((time/t_bar)**l_n-1)/l_n+
105! ((1-sig)/sig)*log((rpgdp/labor)/(A*yl0))-((1-sig)/sig)*log((1-(labor(1)-labor*(1-delta))**(1/thet
105! a)*(h-labor)**(-(1-theta)/theta)/GAMMA/labor)/(1-(l0-l0*(1-delta))**(1/theta)*(h0-l0)**(-(1-theta
105! )/theta)/GAMMA/l0));
106  kshare = -log(1+mu) + log(pi) - ((1-sig)/sig)*g_k*t_bar*((time/t_bar)**l_k-1)/l_k+
106! ((1-sig)/sig)*log((rpgdp/kpreal)/(A*yl0/kl0));
107

WARNING: Cannot find a library containing subroutine LABOR.

108  fit lshare kshare lyl / fiml;
109  run;

NOTE: Execution aborted because of errors in program.
      Reenter the corrected program or enter "QUIT;" to exit procedure.

[ballardw · Accepted solution]

I think the problem is in bold below:

((1-sig)/sig)*log((rpgdp/labor)/(A*yl0))-((1-sig)/sig)*log((1-(labor(1)-labor*(1-delta))**(1/thet

It looks like it is calling a function labor with and argument of 1   labor(1)