endogenous variable

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Endogenous variable

A value determined within the context of a model. Related: Exogenous variable.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Endogenous Variable

A variable with a value determined by the equation in which it exists. See also: Dependent Variable.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

endogenous variable

a VARIABLE in an ECONOMIC MODEL that both affects and is itself affected by the relationship depicted in the model. For example, in the EQUILIBRIUM LEVEL OF NATIONAL INCOME model, an increase in consumption spending increases aggregate demand and raises the level of national income. By the same token, an increase in the level of national income (which results, say, from an increase in investment) will induce an increase in consumption spending. Compare EXOGENOUS VARIABLE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Following the analysis performed, the coefficients of the endogenous variables are statistically significant at a level of confidence of 95%.
The statistical qualities of the model, such as the strong interdependence between exogenous and endogenous variables, support this methodological approach and suggest that OCA theory can provide relatively strong support for the calculation of modified OCA indexes (Skorepa, IES 2011, and Finance a liver 2013).
Annual data is employed for the following endogenous variables (1) Current account as % of GDP, (2) Output gap as % of potential output, and (3) Real effective Exchange rate misalignment
In essence, we apply the Granger causality (GC) concept to investigate the empirical relations between current and lagged endogenous variables and the relative predictive ability of each set of lagged endogenous variables.
This means that the model structure contains only endogenous variables (except the deterministic components of the model), with their maximum delay time being the same.
Each empirical model is developed by trial and error method accommodating exogenous and endogenous variables and also by observing goodness-of-fit values of the models and consistency with real life expected scenario.
Empiricists: Convinced that observation is our only tool against economic ignorance, empiricists are certain that the only defensible theoretical propositions are those derived from discerning patterns whereby changes in exogenous variables constantly precede changes in endogenous variables, thus establishing empirically (for example, through Granger tests) the direction of causality.
Some studies treat car ownership and travel distance as the endogenous variables explained by sociodemographics and built environment [1, 16], while other studies consider them as the exogenous variables to explain mode choice behavior [4, 17].
where [y.sub.t] = ([y.sub.1t],[y.sub.2t], ..., [y.sub.kt])' is a vector of K observable endogenous variables.
Basist and [S.sup.PLS] are endogenous variables and c([tau]) is the N-dimensional intercept term vector at the level of division [tau] = ([[tau].sub.1],[[tau].sub.2]).