Hi SAS community,
I am currently working on my master thesis in which I use panel data which I analyse with SAS.
I am using an 2SLS instrumental variables regression and I have some problems understanding the output.
I get extremly large standard errors for all my coefficients (some are above 1000).
When I look at the Log in SAS it shows me the following note:
At 2SLS Iteration 1 convergence assumed because OBJECTIVE=2.100781E-22 is almost zero (<
1E-12).
Does anyone know what this means? And is that the reason why I get such high standard errors?
Do you know what I have to do in order to fix this?
This is the code that I have used:
PROC MODEL DATA = region;
ENDOGENOUS OSS;
INSTRUMENTS OSSLAG1 LOGGLP NEW MATURE Adhikar AnnapurnaMicro Arohan ASAIndia Belghoria Dhosa Jagaran Mahashakti SaharaUtsarga Saija SebaRahara SMGBK UttrayanFinancial;
LOGALBB = beta1 + beta2*OSS + beta3*LOGGLP + beta4*NEW +beta5*MATURE + beta6*Adhikar + beta7*AnnapurnaMicro + beta8*Arohan + beta9*ASAIndia + beta10*Belghoria + beta14*Dhosa + beta15*Jagaran + beta16*Mahashakti + beta18*SaharaUtsarga + beta19*Saija + beta20*SebaRahara + beta21*SMGBK + beta23*UttrayanFinancial;
fit LOGALBB/ 2sls;
RUN;
Thank you very much for your help!
Any help/suggestion is highly appreciated!