Hi Steve, I am a little confused about one thing in your example (and in the example in the SAS documentation) -- why there are y1 and y2, and why do they switch places in the two equations? As the topic starter, I am also trying to run the Hausman Test, and I am not sure how to write the syntax... I thought that with y, endogenous x, and say two instruments (z1 and z2), I should write the first stage first and then the second stage... Is it not right? Where do y1 and y2 come from? proc model data = data;
endo x;
instruments z1 z2;
y = b0 + b1*x;
x = b00 + b2*z1 + b3*z2;
fit y / ols 2sls hausman;
run;
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