Although the subject of your posting is "Panel data" I don't see how the panel structure of your data is spcified in your PROC MODEL estimation. PROC MODEL does not have built in facilities to handle panel data for this model. The large standard errors may be a symptom of collinearity in your data for this model. The message about convergence indicates that the data may underspecify the parameters in your model as well. To know for sure what's causing these results it would be necessary to examine the REGION data set you are using. ... View more