Definition of Exogeneous

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A variable is exogenous to a model if it is not determined by other parameters and variables in the model, but is set externally and any changes to it come from external forces. Contrast endogenous.

Terms related to Exogeneous:

  • Endogenous
  • Exclusion Restrictions
  • Stochastic Difference Equation

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Your Citation
Moffatt, Mike. "Definition of Exogeneous." ThoughtCo, Mar. 27, 2017, Moffatt, Mike. (2017, March 27). Definition of Exogeneous. Retrieved from Moffatt, Mike. "Definition of Exogeneous." ThoughtCo. (accessed November 18, 2017).