Hello SAS-fellows,

I want to test contemporaneous correlation and Endogeneity with ny data set but two problems occur when I did research in the SAS help:

1) I cannot find any information about testing cont.correlation in the help menu

2) regarding Endogeneity I found this code:

proc model data=one out=fiml2;
endogenous y1 y2;
y1 = py2 * y2 + px1 * x1 + interc;
y2 = py1* y1 + pz1 * z1 + d2;
fit y1 y2 / ols sur 2sls 3sls fiml hausman;
instruments x1 z1;
run;

But I dont understanf the fit line and the instruments line?

My model do not have y1 in the other equation and which x1 resp. z1 is meant

I am greatful for any help,

Nelson

only 1) would be also a great help???

how can I test contemporaneous correlation in SAS?

THANKS & happy holidays,

nelson