exogenous variable definition

exogenous variable

Independent variable that affects a model without being affected by it, and whose qualitative characteristics and method of generation are not specified by the model builder. An exogenous variable is used for setting arbitrary external conditions, and not in achieving a more realistic model behavior. For example, the level of government expenditure is exogenous to the theory of income determination. See also endogenous variable.

exogenous variable is in the Statistics, Mathematics, & Analysis subject.

exogenous variable appears in the definition of the following term: endogenous variable

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