What is Endogenous – Troubleinthepeace

Endogenous variable is a variable in the economic model that affects and is affected by the relationship expressed in the model.

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Endogenous variable (endogenous variable) is a variable in the economic model that affects and is affected by the relationship expressed in the model.

See also: What is Quarrel

(References: Nguyen Van Ngoc, Dictionary of Economics, National Economics University)

The endogenous variable (also known as “dependent variable”) can also be explained as variables whose value depends on other variables included in the model. As in the formula y = ax + b then y is an endogenous variable.

For example, in an economic model, people’s spending always depends on their income. If they have a high income, they will spend more (buying branded goods), if they have a low income, they will spend less (buying normal).

See also: What is Nvocc – Differentiate Freight Forwarder And Nvocc

Another example of an endogenous variable is that in the equilibrium output model, an increase in consumption increases aggregate demand and equilibrium output while raising national income. Similarly, an increase in output due to an increase in investment increases the norm for consumption.

Minh Anh
Keywords:endogenous variable, what is endogenous variable, endogeneous variable, what is endogeneous variable,
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