Difference between endogenous and exogenous variables in an economic model
Answers
Explanation:
In an economic model, an exogenous variable is one whose value is determined outside the model and is imposed on the model, and an exogenous change is a change in an exogenous variable. In contrast, an endogenous variable is a variable whose value is determined by the model.
Answer:
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Explanation:
Endogenous are dependent variable (DV) that we want to explain. Exogenous are independent variables (IVs) that is/are effecting the dependent variable. The key to identify which is which, is that the endogenous variable has NO impact on the exogenous variables. Now, in multivariate regression analysis, commonly we want to estimate if there is statistical relationship between a DV and IVs. The analysis depends on type of DV. If the DV is a continuous variable and reasonably normal, we use linear regression. If dichotomous, we use logistic regression. If multinominal (or Poisson), we use log-linear analysis. Or Cox regression for time-to-event experiments (survival). As you notice, the terms endogenous and exogenous are not commonly used when explaining regression analysis in general. For DV, we usually use the term such as a response, an outcome or criterion variable. For IVs, we usually use the term such as predictors, the causes, or explanatory variables. Although
it looks like it falls into similar definition, it is uncommon (as far as I know in medical research that is) to use the term endogenous/exogenous. It is, however, commonly used in the structural model of Structual Equation Modeling (SEM)