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

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.

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.
References in periodicals archive ?
Herein, the models suggested assume the modeling of asset returns, just as in the GARCH approach, but they include lagged realized variation as an exogenous variable to verify the contribution in volatility estimation and forecasting.
As all P-Values for path coefficients between exogenous variables (SHEM, and EA) and endogenous variable (EA) are less than (0.
Hence a linear regression may not be the best modeling tool to find the causal relationship between the endogenous and exogenous variables.
As exogenous variables, government support, perceived risk, and education attainment influence subjective norms, PEU, and PU.
While states and coalitions are endogenous to the G-20 negotiation process, their behavior can also be driven by exogenous variables that reshape the context in which they operate.
VAR models enable modeling of the futures prices based on a selection of endogenous or exogenous variables (10).
The analysis described above was repeated with NARX(p, q) ANNs with p [member of] {1,2} and q [member of] {1,2} in order to investigate whether the inclusion of temporal correlation in the dependent and exogenous variables would lead to better forecasts for the wind speed.
Exogenous variables are always independent variables in the SEM equations.
The determination of the number of regimes for large-sized banks is shown in Table 3, whilst the parameter estimates and the impact of the exogenous variables are presented in Table 4.
The mid-term real interest rate is also included as an exogenous variable, along with losses and GDP.
Table 8: Exogenous variable forecasts for 31/12/2007 to 31/12/2010 (nominal values) 31/12/2007 31/12/2008 Selic goal defined by Copom 11.
In this context, the second difference is the change in the rate of growth of the variable, and it does not indicate whether the variable is increasing or decreasing but whether the change occurs faster or slower in response to movement of an exogenous variable.