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.