Plotting Residuals

The SYSLIN Procedure

Plotting Residuals

You can plot the residuals against the regressors by specifying the PLOT option on the MODEL statement. For example, the following statements plot the 2SLS residuals for the demand model against price, income, price of substitutes, and the intercept.

   proc syslin data=in 2sls;
      endogenous  p;
      instruments y u s;
      demand: model q = p y s / plot;
   run;

The plot for price is shown in Figure 19.12. The other plots are not shown.

The SYSLIN Procedure

Two-Stage Least Squares Estimation

         --+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+--
  DEMAND |                                                                     |
         |                                                                     |
         |                                                                     |
     0.6 +                                                                     +
         |                                                                     |
Q        |                                                                     |
u        |                                                                     |
a    0.4 +                                                                     +
n        |                                               1 1                   |
t        |                                                                     |
i        |                                       111                           |
t    0.2 +                                  2      1 1                         +
y        |                    1    1  11              1 1                      |
         |                   1   1  1                  1                       |
         |                     2  1       1    11 1       11                   |
     0.0 +                           1    11       2                           +
         |              1  1   1            1    1       1                     |
         |                 1       1    1  1  1  1   1 1                       |
         |                  1 1    1        1 1                                |
    -0.2 +                            1         2       1                      +
         |                       1                                             |
         |                   1           1                                     |
         |                                  1                                  |
    -0.4 +                                                                     +
         |                                                                     |
         |                                                                     |
         |                                                                     |
    -0.6 +                                                                     +
         |                                                                     |
         |                                                                     |
         --+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+--
          2.0   2.2   2.4   2.6   2.8   3.0   3.2   3.4   3.6   3.8   4.0   4.2 
                                                                                
                            Price                  p

Figure 19.12: PLOT Option Output for P

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