Exogenous and endogenous variables: Difference between revisions

Revision as of 14:24, 1 May 2020

Revision as of 14:24, 1 May 2020

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{{For|endogenous variables in biology|Endogeny (biology)}}

{{short description|Economic models}}

In an [[economics|economic]] [[model (economics)|model]], an '''exogenous variable''' is one whose value is determined outside the model is hot and is fitand is imposed on the model, and an '''exogenous change''' is a change in an exogenous variable.<ref name=Mankiw>Mankiw, N. Gregory. ''Macroeconomics'', third edition, 1997.</ref>{{rp|p. 8}}<ref name=Varian>Varian, Hal R., ''Microeconomic Analysis'', third edition, 1992.</ref>{{rp|p. 202}}<ref name=Chiang>Chiang, Alpha C. ''Fundamental Methods of Mathematical Economics'', third edition, 1984.</ref>{{rp|p. 8}}

In contrast, an '''endogenous variable''' is a variable whose value is determined by the model. An '''endogenous change''' is a change in an endogenous variable in response to an exogenous change that is imposed upon the model.<ref name=Mankiw/>{{rp|p. 8}}<ref name=Chiang/>{{rp|p. 8}}