Hi SAS community, I am currently working on my master thesis in which I use panel data which I analyse with SAS. I am using an 2SLS instrumental variables regression and I have some problems understanding the output. I get extremly large standard errors for all my coefficients (some are above 1000). When I look at the Log in SAS it shows me the following note: At 2SLS Iteration 1 convergence assumed because OBJECTIVE=2.100781E-22 is almost zero (< 1E-12). Does anyone know what this means? And is that the reason why I get such high standard errors? Do you know what I have to do in order to fix this? This is the code that I have used: PROC MODEL DATA = region; ENDOGENOUS OSS; INSTRUMENTS OSSLAG1 LOGGLP NEW MATURE Adhikar AnnapurnaMicro Arohan ASAIndia Belghoria Dhosa Jagaran Mahashakti SaharaUtsarga Saija SebaRahara SMGBK UttrayanFinancial; LOGALBB = beta1 + beta2*OSS + beta3*LOGGLP + beta4*NEW +beta5*MATURE + beta6*Adhikar + beta7*AnnapurnaMicro + beta8*Arohan + beta9*ASAIndia + beta10*Belghoria + beta14*Dhosa + beta15*Jagaran + beta16*Mahashakti + beta18*SaharaUtsarga + beta19*Saija + beta20*SebaRahara + beta21*SMGBK + beta23*UttrayanFinancial; fit LOGALBB/ 2sls; RUN; Thank you very much for your help! Any help/suggestion is highly appreciated!
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