Definition of Endogenous variable:
Endogenous variables are the opposite of exogenous variables, which are independent variables or outside forces. Exogenous variables can have an impact on endogenous factors, however.
An endogenous variable is a variable in a statistical model that's changed or determined by its relationship with other variables within the model. In other words, an endogenous variable is synonymous with a dependent variable, meaning it correlates with other factors within the system being studied. Therefore, its values may be determined by other variables.
Dependent variable generated within a model and, therefore, a variable whose value is changed (determined) by one of the functional relationships in that model. For example, consumption expenditure and income is considered endogenous to a model of income determination. See also exogenous variable.
How to use Endogenous variable in a sentence?
- Endogenous variables are dependent variables, meaning they correlate with other factors—although it can be a positive or negative correlation.
- Endogenous variables are important in economic modeling because they show whether a variable causes a particular effect.
- Endogenous variables are variables in a statistical model that are changed or determined by their relationship with other variables.
Meaning of Endogenous variable & Endogenous variable Definition