Date:         Mon, 2 Jul 2007 07:25:11 -0700
Reply-To:     rong.guo@GMAIL.COM
Sender:       "SAS(r) Discussion" <SAS-L@LISTSERV.UGA.EDU>
From:         rong.guo@GMAIL.COM
Organization: http://groups.google.com
Subject:      Re: simultaneous equation model questions
Comments: To: sas-l@uga.edu
In-Reply-To:  <1183061402.984919.28940@k29g2000hsd.googlegroups.com>
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On Jun 28, 4:10 pm, shilin...@yahoo.com wrote:
> On Jun 28, 12:20 pm, rong....@gmail.com wrote:
>
>
>
> > Greetings!
>
> > I am doing a project that needs to run asimultaneousequation model.
> > Since this is the first time I deal withsimultaneousequation, I have
> > some questions and any help on this is highly appreciated!
>
> > Let me briefly introduce what I am doing here. There are two decision
> > variables: "percentage to buy" and "premium", which will be the
> > dependent variable in theequations, so there are two linearequations
> > in thissimultaneousmodel. "percentage to buy" and "premium" each
> > depends on some variables, and at the same time, they also depend on
> > each other.
>
> > I listed all the variables in theequationsto illustrate the
> > relationship. As you can see, premium and pct_buy are the dependent
> > variable in one equation, but they are also independent variable in
> > the other equation. And the 2equationsshare a common independent
> > variable "offer", and they each also has its own independent
> > variable.
>
> > equation 1:
> > dependent variable: pct_buy
> > independent variables: offer, liquidity, premium
>
> > equation 2:
> > dependent variable: premium
> > independent variables: offer, size, pct_buy
>
> > I need to run asimultaneousequation to reflect this scenario. I am
> > thinking that PROC CALIS might be able to help me, and tried to set up
> > a model, but I am sure it is not complete. Can anyone please take a
> > look and let me know if I am on the right track, and give me some
> > hints on improving the model setup?
>
> > proc calis data= bank.offer;
> > var premium pct_buy offer size liquidity;
> > lineqs
> > premium = b1 offer + b2 size + b3 pct_buy + e1,
> > pct_buy = b4 offer + b5 liquidity + b6 premium + e2;
> > run;
>
> > Thanks so much!
>
> > Rong
>
> I am not sure for proc calis , but I am sure the proc model can do it
> -- wthich is in SAS/ETS pakage.
>
> HTH

Thanks for your reply. I looked over PROC MODEL, and looks like it
handles nonlinear equations. The 2 equations in my model are either
both OLS models, or one is OLS, and the other is PROBIT. In such case,
can I still use PROC MODEL?

THANKS!