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EconJAZZ
Obsidian | Level 7
The Jacobian is 'only' 9-by-16,000, which should amount to roughly 0.001152 GB
Rick_SAS
SAS Super FREQ

Ah! Thanks, I was confused. In that case, I don't know why you are getting an out-of-memory error.

EconJAZZ
Obsidian | Level 7
Alright, thanks for checking, @Rick_SAS. I'll post the solution when I get it.
Rick_SAS
SAS Super FREQ

It might be insightful to find out how large the data can be before the problem occurs. For example, instead of 
READ ALL VAR ...
you could try 

%let size = 1000;
use work.olsmat;
read next &size var {g1 g2 g3 g4 g5 g2_g1 g4_g1 g3_g1 g5_g1};
close;

etc

%let nobs = 1000;

read next &size