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The SYSLIN Procedure

LIML, K-Class, and MELO Estimation

To obtain limited information maximum likelihood, general K-class, or minimum expected loss estimates, use the ENDOGENOUS, INSTRUMENTS, and MODEL statements as in the 2SLS case but specify the LIML, K=, or MELO option instead of 2SLS in the PROC SYSLIN statement. The following statements show this for K-class estimation.

   proc syslin data=in k=.5;
      endogenous  p;
      instruments y u s;
      demand: model q = p y s;
      supply: model q = p u;

For more information about these estimation methods, see the section Estimation Methods and consult econometrics textbooks.

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