exogenous variable

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Exogenous variable

A variable whose value is determined outside the model in which it is used. Related: Endogenous variable
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Exogenous Variable

In a model, any independent variable whose value is not determined by the model. An exogenous variable is not affected by the model, but still may determine the value of one or more dependent variables. See also: Endogenous variable.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

exogenous variable

a VARIABLE that affects the operation of an ECONOMIC MODEL but which itself is not affected by any of the relationships depicted in the model. For example, in the EQUILIBRIUM LEVEL OF NATIONAL INCOME MODEL, an increase in exports will increase AGGREGATE DEMAND and induce an increase in the level of national income, but the volume of exports itself is determined by any other country's propensity to import and not by the level of its own national income. Compare ENDOGENOUS VARIABLE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The vector of endogenous domestic variables in the basic model consists of aggregate and sectoral output (Output), index of domestic prices (Price), and an indicator of the monetary policy stance, i.e., overnight weighted call money rate (INT), while the vector of exogenous variables consists of oil price index (OIL), federal fund rate (FFR) and GDP of the USA (USGDP).
As all P-Values for path coefficients between exogenous variables (SHEM, and EA) and endogenous variable (EA) are less than (0.05).
The five publicly available BASIC scores are input in the model as exogenous variables, and Crash-per-Million-Miles is designated as the endogenous variable.
As exogenous variables, government support, perceived risk, and education attainment influence subjective norms, PEU, and PU.
However, state behavior can be influenced by exogenous variables that shift the behavior of actors.
VAR models enable modeling of the futures prices based on a selection of endogenous or exogenous variables (10).
Thus, both of the variance and covariance of observed variables (i.e., the indexes of the endogenous variables and exogenous variables) are the parameter functions of the model.
SEM models include both endogenous and exogenous variables. Endogenous variables act as a dependent variable in at least one of the SEM equations; they are called endogenous variables rather than response variables because they may become independent variables in other equations within the SEM equations.
As suggested by Meier (2006), there are nevertheless theoretical and empirical reasons to extend this model, including exogenous variables. The regulation can also affect insurance pricing (Berry-Stolzle and Born, 2010).
Exogenous variables of consideration, coordination, and skill had significant effect on academic performance with regression coefficients of .16, -.07, and .08, respectively.