The appropriate econometric model when the dependent variable is percentage (from 0 to100)

[Aleksandar]

Dear Sas community,

I was running a GLM model wherein the dependent variable is the discrete (Inv_Stock) - a percentage that takes from 0 to 100. The code is the following one:

proc glm data=WORK.test;
model Inv_Stock = Low_Target IR_minus2 IR_2 IR_4 IR_6 IR_8 IR_10 player_Target Risk_tolerance player_Posess_account player_Own_stocks Age Male Student_yes;
run;

Could you tell me whether GLM is an appropriate model for this analysis, and if not, what is the right model to use to run the regression?

Thank you,

Aleksandar

[Ksharp]

Check this Possion Regression.
http://support.sas.com/kb/24/188.html

[sld]

If the data are proportions, bounded between 0 and 1, I would consider either a binomial distribution (if the proportions are determined as a ratio of two counts) or a beta distribution. Consider the GLIMMIX procedure.

[StatDave]

See these notes concerning modeling continuous proportions: 56992 57480 .