An endogenous variable is a variable in a statistical model that's changed or determined by its relationship with other variables within the model. ... Therefore, its values may be determined by other variables. Endogenous variables are the opposite of exogenous variables, which are independent variables or outside forces.
What are examples of endogenous variables?
Examples of an Endogenous Variable
- Equilibrium in supply and demand. The equilibrium price and quantity in a supply and demand economic model is an endogenous variable. ...
- Income. In economic or statistical models that include income, it is considered to be an endogenous variable. ...
- Interest rate. ...
- Agriculture. ...
- Education.
What are the examples of exogenous variable?
An exogenous variable is a variable that is not affected by other variables in the system. For example, take a simple causal system like farming. Variables like weather, farmer skill, pests, and availability of seed are all exogenous to crop production.
