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.
