What is the difference between an exogenous variable and an endogenous variable in an economic model? Would

Question:

What is the difference between an exogenous variable and an endogenous variable in an economic model? Would it ever be useful to construct a model that contained only exogenous variables (and no endogenous variables)?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

See More Books

Question Posted: Mar 17, 2016 04:44 AM

See More Questions

What is the difference between an e-mail and an Internet survey?
What is the difference between an options price and its payoff?
What is the difference between an equilibrium model and a no-arbitrage model?
To load and register a JDBC driver, two popular methods can be used: either using the Class.forName() method or creating a new instance of the Driver class.(True/False)
Use the recommendations given in Section 11.5.2 to rewrite the query to produce the required results more efficiently.
Recall that Figure 3.19 drew scatterplots of cheese fat percentage and moisture percentage using data from Canada, while also considering the type of cheese and adding a trend line. Below are the...
Refer to Figure 8, the sequence diagram for the Make Appointment use case. Three spaces are identified in this diagram. Explain the significance of each.
Janet has a PAP with the following coverages: Liability coverages: $100,000/$300,000/$50,000 Medical payments coverage: $5000 each person Uninsured motorists coverage: $25,000 each person Collision...
Ricky's Piano Rebuilding Company has been operating for one year. On January 1 , at the start of its second year, its income statement accounts had zero balances and its balance sheet account...
Following is the unadjusted trial balance for Alonzo Institute as of December 31, 2015, which initially records prepaid expenses and unearned revenues in balance sheet accounts. The Institute...
Suppose the market for wheat is competitive, with an upward-sloping supply curve, a downward-sloping demand curve, and an equilibrium price of $4.00 per bushel. Why would a higher price (e.g., $5.00...
Why do economists do comparative statics analysis? What role do endogenous variables and exogenous variables play in comparative statics analysis?
What are two early divisions of socialist thought?
The income statement for California Communications follows. Assume California Communications signed a three-month, 9%, $3,000 note on June 1, 2024, and that this was the only note payable for the...
What might be the most useful segmentation bases for the mobile phone market?
How do family members influence each others buying behaviour?
Under what circumstances would qualitative research be more appropriate than quantitative research?
What sales forecasting approaches would be most suitable for the launch of a new family car?
The rod assembly has a weight of 5 lb/ft. It is supported at B by a smooth journal bearing, which develops x and y force reactions, and at A by a smooth thrust bearing, which develops x, y, and z...
Express mass density in kg/m3 and weight density in lb/ft3. 1. Find the mass density of a chunk of rock of mass 215 g that displaces a volume of 75.0 cm3 of water. 2. A block of wood is 55.9 in. x...
How can a company successfully differentiate their product or service in a highly saturated market, and what are the most effective marketing strategies to communicate this unique value proposition...
The following Python program swaps two variables which is entered by user # To take input from the user x = input ('Enter value of x: ') y = input ('Enter value of y: ') # create a temporary variable...
1. Raman purchases a motor car from Bharathan whose cash price is Rs. 56,000 on 11.93. Rs. 15,000 is paid on signing the contract and the balance is to be paid in three equal annual instalments of...

What is the difference between an exogenous variable and an endogenous variable in an economic model? Would

Question:

Step by Step Answer:

Exogenous variables are taken as given in an economic model ie they are determ...View the full answer

Microeconomics

Students also viewed these Economics questions