What is the difference between exogenous variables and endogenous variables

The editor will share with you what is the difference between exogenous variables and endogenous variables. I hope you will gain a lot after reading this article. Let's discuss it together.

The difference between the exogenous variable and the endogenous variable: 1. The endogenous variable refers to the variable to be determined by the model, which can be explained in the model system, while the exogenous variable is determined and input by the economic system externally and cannot be explained in the model system. 2. The endogenous variable is determined by the model system, while the exogenous variable only affects the system and is not affected by the system.

The difference between exogenous variables and endogenous variables:

First, the subject is different

1. Endogenous variables: refers to the variables to be determined by the model. It can be explained in the model system.

2. Exogenous variables: variables determined and input from the outside of the economic system can not be explained in the model system.

Second, different characteristics

1. Endogenous variable: a random variable with a certain probability distribution, whose parameters are the estimated elements of simultaneous equation system.

2. Exogenous variable: it can affect the endogenous variable, but it is determined by the external factors constantly studied by the economic model. This variable can usually be controlled by policy and used as a variable for the government to achieve its policy objectives.

3. Different rules

1. Endogenous variables: it is determined by the model system.

2. Exogenous variables: only affect the system but not be affected by the system.

After reading this article, I believe you have a certain understanding of the difference between exogenous variables and endogenous variables. If you want to know more about it, welcome to follow the industry information channel. Thank you for your reading!