NLPQN - ERROR: (execution) Unable to allocate sufficient memory

[EconJAZZ]

The Jacobian is 'only' 9-by-16,000, which should amount to roughly 0.001152 GB

[Rick_SAS]

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

[EconJAZZ]

Alright, thanks for checking, @Rick_SAS. I'll post the solution when I get it.

[Rick_SAS]

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