Please try
data test;
input id$2. effdate :$ enddate:$ ;
start=input(scan(effdate,2,'.'),best.);
startm=input(scan(effdate,1,'.'),best.);
end=input(scan(enddate,2,'.'),best.);
endm=input(scan(enddate,1,'.'),best.);
datalines;
1 09.1996 07.2000
1 10.2000 10.2010
1 12.2014 12.2017
2 11.2012 12.2014
2 02.2015 08.2017
3 02.2000 07.2014
3 08.2014 05.2018
;
run;
proc sql;
select min(start), max(end) into: min , : max from test;
quit;
data want;
set test;
array yrs(*) flag1996 flag1997 flag1998 flag1999 flag2000 flag2001 flag2002 flag2003 flag2004 flag2005 flag2006 flag2007 flag2008 flag2009 flag2011 flag2012 flag2013 flag2014 flag2015 flag2016 flag2017 flag2018;
array yrss(22) _temporary_ (1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016 2017 2018);
do i = 1 to dim(yrs);
if start<=yrss(i)<=end and (startm>=12 or endm>=12) then yrs(i)=1;
else if start<yrss(i)<end and (startm<12 or endm<12) then yrs(i)=1;
end;
run;
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