Hi Reeza,   The following is the dataset. Obs GVKEY FYEAR XAD be01234567891011 001001 1983 1.3300 -3.3250 001001 1984 1.8400 . 001001 1985 3.0390 . 001003 1982 0.1610 -0.4025 001003 1983 0.1540 . 001003 1984 0.2150 . 001003 1985 1.0260 . 001003 1986 1.7720 . 001003 1987 2.3980 . 001003 1988 2.1080 . 001003 1989 1.0070   The following is the program and log. 167 data s7; 168 set s6; 169 by gvkey; 170 retain be1; 171 if not missing(be0) then be1=be0; 172 else be1 = be1*0.5 + xad; 173 drop=be0; 174 run; NOTE: There were 78993 observations read from the data set WORK.S6. NOTE: The data set WORK.S7 has 78993 observations and 25 variables. NOTE: DATA statement used (Total process time): real time 0.15 seconds cpu time 0.04 seconds   The following is output. Obs GVKEY FYEAR XAD be11234567891011 001001 1983 1.3300 -3.325 001001 1984 1.8400 0.178 001001 1985 3.0390 3.128 001003 1982 0.1610 -0.403 001003 1983 0.1540 -0.047 001003 1984 0.2150 0.191 001003 1985 1.0260 1.122 001003 1986 1.7720 2.333 001003 1987 2.3980 3.564 001003 1988 2.1080 3.890 001003 1989 1.0070 2.952   be0 should remain in 1983 for gvkey 1001 firm and in 1982 for gvkey 1003. be1 should be computed from 1984 for gvkey 1001 firm and 1983 for gvkey 1984 firm.   It will be appreciative if you can help me to fix this issue.   Sincerely, Joon1 ... View more

Thank you so much for your prompt response     My actual data is as follows.   data have; input year firm $ B0 A; datalines;   1992  A 0.2 . 1993  A       25 1994  A       30 1995  A       40 2002  B 0.3 . 2003  B       50 2004  B       100 2005  B      150 I need to start from B0 and compute Bt in each year.                                                B 1992  B0=0.2                          0.2 1993 B1=0.5*B0 + A(25)        0.2*0.5+25=25.1 1994  B2=0.5*B1 + A(30)        25.1*0.5+30=42.55 1995  B3=0.5*B2 + A(40)        42.55*0.5+40=83.05 2002  B0=0.3                          0.3 2003  B1=0.5*B0 + A(50)        0.3*0.5 +50=50.15 2004  B2=0.5*B1 + A(100)       50.15*0.5+100=125.075 2005 B3=0.5*B2 + A(150)        125.075*0.5+150=212.5375   ... View more

Thank you so much again However, be0 should remain in the first year when observation of a company is available. If the code you provided is used, B0 is dropped and B1(be1) is computed for the first year. B1 should be computed from 1984 for the company with gvkey 1001 and 1983 for the company with gvkey 1003. Could you please help me this part? Thank you again Obs GVKEY FYEAR XAD be11234567891011 001001 1983 1.3300 -3.325 001001 1984 1.8400 0.178 001001 1985 3.0390 3.128 001003 1982 0.1610 -0.403 001003 1983 0.1540 -0.047 001003 1984 0.2150 0.191 001003 1985 1.0260 1.122 001003 1986 1.7720 2.333 001003 1987 2.3980 3.564 001003 1988 2.1080 3.890 001003 1989 1.0070 2.952 ... View more

Thank you so much again   However, be0 should remain in the first year when observation of a company is available. If the code you provided is used, B0 is dropped and B1(be1) is computed for the first year. B1 should be computed from 1984 for the company with gvkey 1001 and 1983 for the company with gvkey 1003. Could you please help me this part?  Thank you again   Obs GVKEY FYEAR XAD be11234567891011 001001 1983 1.3300 -3.325 001001 1984 1.8400 0.178 001001 1985 3.0390 3.128 001003 1982 0.1610 -0.403 001003 1983 0.1540 -0.047 001003 1984 0.2150 0.191 001003 1985 1.0260 1.122 001003 1986 1.7720 2.333 001003 1987 2.3980 3.564 001003 1988 2.1080 3.890 001003 1989 1.0070 2.952 ... View more

Hi PGStats,   Thank you so much for your help   My actual data is as follows. 0.5 is just constant and it can be included in the program. I am not sure where you defined 'prevB' in the previous program.   data have; input year firm $ factor B0 A; datalines; 1992  A 0.2 . 1993  A       25 1994  A       30 1995  A       40 2002  B 0.3 . 2003  B       50 2004  B       100 2005  B      150 I need to start from B0 and compute Bt in each year.   1992  B0=0.2 1993 B1=0.5*B0 + A(25) 1994  B2=0.5*B1 + A(30) 1995  B3=0.5*B2 + A(40) 2002  B0=0.3 2003  B1=0.5*B0 + A(50) 2004  B2=0.5*B1 + A(100) 2005 B3=0.5*B2 + A(150)   It will be grateful if you can help me a bit more.   Sincerely, Joon1 ... View more

Thank you ... View more

Thank you My pc is 64 bit OS. RAM is 8.00 GB (7.49 GB usable). The sample is only 11,590 observations. It is very strange to have memory issue. This may be not real memory issue. ... View more

Thank you so much for your help I tried hplogistic command and it just runs program without producing results. The hard drive of computer is very noisy and the computer (Dell PC) is not functioning well. Do you have any other advice?  Thank you   Sincerely, Joon1 ... View more

Thank you so much for your response Even after entering your code at the first line, I still have the same error message. Any further advice will be highly appreciated.   504 data _null_; FREERAM_MB=input(getoption('xmrlmem'),20.)/1024/1024; put FREERAM_MB= 8.; run; FREERAM_MB=1622 NOTE: DATA statement used (Total process time): real time 0.00 seconds cpu time 0.01 seconds 　 505 proc options group=memory; run; SAS (r) Proprietary Software Release 9.4 TS1M3 　 Group=MEMORY SORTSIZE=268435456 Specifies the amount of memory that is available to the SORT procedure. SUMSIZE=0 Specifies a limit on the amount of memory that is available for data summarization procedures when class variables are active. MAXMEMQUERY=0 Specifies the maximum amount of memory that is allocated for procedures. MEMBLKSZ=16777216 Specifies the memory block size for Windows memory-based libraries. MEMMAXSZ=2147483648 Specifies the maximum amount of memory to allocate for using memory-based libraries. LOADMEMSIZE=0 Specifies a suggested amount of memory that is needed for executable programs loaded by SAS. MEMSIZE=2147483648 Specifies the limit on the amount of virtual memory that can be used during a SAS session. REALMEMSIZE=0 Specifies the amount of real memory SAS can expect to allocate. NOTE: PROCEDURE OPTIONS used (Total process time): real time 0.01 seconds cpu time 0.03 seconds 　 　 　 498 499 proc logistic data=c11; 500 model deltar (descending) = lev fsize lirisk mb ltenure outsidechmn ceoapptdoutsdirs 500! staggered 501 pctoldoutsdirs pctbusyoutsdirs outsidedirholds lnumberdirs pctfinexpsaud/rsq; 502 output out=p1 p=prob; 503 run; ERROR: The SAS System stopped processing this step because of insufficient memory. NOTE: There were 11590 observations read from the data set WORK.C11. WARNING: The data set WORK.P1 may be incomplete. When this step was stopped there were 0 observations and 272 variables. NOTE: PROCEDURE LOGISTIC used (Total process time): real time 2.64 seconds cpu time 2.43 seconds ... View more

Thank you so much! ... View more