To sum up, irrespective of the exogenous variables
included, the premiums are endogenous in the long term, taking the burden of short-run adjustment to the estimated long-run relationships.
Though we start with the same number of lags on the endogenous and exogenous variables
in equation (1), we later will set certain coefficients in[[PSI].
The first step in this test is to run an auxiliary regression in which the property rights index is regressed on the above hypothesized exogenous variables
(the constant, physical and human capital accumulation and the growth rate of working age population) and an instrumental variable--in this case, the black market premium or discount on the exchange rate in 1985.
The lower right panel of Figure 1 shows the impulse response of the federal funds rate to its own shock when the exogenous variable
Z is included in the system.
Hence, as the value for w increases (0 < w < 1), the greater will be the amount of time which expires before the full impact of a onetime change in an exogenous variable
The structural model depicted in Figure 1 (including only one poverty measure--persistent poverty) was compared with a number of alternative specifications: a null model (setting paths from the exogenous variables
to the parenting constructs and from the parenting constructs to the outcomes to zero); a direct-influence model (exogenous variables
affect the outcomes directly); and four mediation models in which parenting constructs were introduced incrementally.
10) A decision can be made to exclude the variable from the model's solution; but once excluded, a behavioral variable acts like an exogenous variable
, and generally, important feedback effects are lost.
The third model estimated expenditures on durable goods with ICE as an exogenous variable
Market size is most reasonably measured by population of the home-team city, and redistribution based on that exogenous variable
would not interfere with profit-maximizing incentives of owners.
In this paper, we hypothesize that both exchange rates and equity prices are endogenous variables, and thus their long-term relationship should be dependent on the predominant exogenous variable
that causes movements in these variables.
The interest rate functions as a monetary policy instrument and is therefore a key exogenous variable
in the model.
Model 1 estimates the probability that the firm will choose independent agency, treating ownership form as an exogenous variable