Definition:Exogenous Variable

Definition

In an economic model, an exogenous variable is a variable which models a phenomenon which impinges upon the system from outside.

Examples

An example of an exogenous variable is the occurrence and quantity of rainfall.

Depending on the economic model under analysis, it may be the case that the demand for certain products, for example, may be affected by the weather.

Also see

• Definition:Endogenous Variable

• Results about exogenous variables can be found here.

Sources

• 1998: David Nelson: The Penguin Dictionary of Mathematics (2nd ed.) ... (previous) ... (next): endogenous variables
• 1998: David Nelson: The Penguin Dictionary of Mathematics (2nd ed.) ... (previous) ... (next): exogenous variables
• 2008: David Nelson: The Penguin Dictionary of Mathematics (4th ed.) ... (previous) ... (next): endogenous variables
• 2008: David Nelson: The Penguin Dictionary of Mathematics (4th ed.) ... (previous) ... (next): exogenous variables