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ENDOGENOUS VARIABLES

Statistics Directorate    
Definition:
Endogenous variables designates variables in an economic/econometric model that are explained, or predicted, by that model.

Context:
The statistical representation and analysis of multivariate systems generally involves a primary division of variates into those which are endogenous and those which are exogenous. Endogenous variates are those which form an inherent part of the system, as for instance price and demand in an economic system.

Exogenous variates are those which impinge on the system from the outside, e.g. rainfall or epidemics of disease. It is possible for a variate to be endogenous in one model and exogenous in another, for example, rainfall might be regarded as exogenous to an economic model of the automobile industry but endogenous to a meteorological model describing climatic states. (A Dictionary of Statistical Terms, 5th edition, prepared for the International Statistical Institute by F.H.C. Marriott. Published for the International Statistical Institute by Longman Scientific and Technical).

Source Publication:
The OECD Economic Outlook: Sources and Methods.

Cross References:
Exogenous variables

Hyperlink:
http://www.oecd.org/eco/outlook/sources-and-methods.htm

Statistical Theme: Methodological information (metadata)

Created on Tuesday, September 25, 2001

Last updated on Friday, March 28, 2014