Exogenous and endogenous variables

In an economic model, an exogenous variable is one whose measure is determined outside the model and is imposed on the model, and an exogenous change is a change in an exogenous variable.^[1]^{: p. 8}^[2]^{: p. 202}^[3]^{: p. 8} In contrast, an endogenous variable is a variable whose measure is determined by the model. An endogenous change is a change in an endogenous variable in response to an exogenous change that is imposed upon the model.^[1]^{: p. 8}^[3]^{: p. 8}

The term 'endogeneity' in econometrics has a related but distinct meaning. An endogenous random variable is correlated with the error term in the econometric model, while an exogenous variable is not.^[4]

^ ^a ^b Mankiw, N. Gregory. Macroeconomics, third edition, 1997.
^ Varian, Hal R., Microeconomic Analysis, third edition, 1992.
^ ^a ^b Chiang, Alpha C. Fundamental Methods of Mathematical Economics, third edition, 1984.
^ Wooldridge, Jeffrey M. (2009). Introductory Econometrics: A Modern Approach (Fourth ed.). Mason: South-Western. p. 88. ISBN 978-0-324-66054-8.

[Mankiw-1] Mankiw, N. Gregory. Macroeconomics, third edition, 1997.

[Varian-2] Varian, Hal R., Microeconomic Analysis, third edition, 1992.

[Chiang-3] Chiang, Alpha C. Fundamental Methods of Mathematical Economics, third edition, 1984.

[4] Wooldridge, Jeffrey M. (2009). Introductory Econometrics: A Modern Approach (Fourth ed.). Mason: South-Western. p. 88. ISBN 978-0-324-66054-8.

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