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What are endogenous and exogenous factors in economic terms?
In the economic sense, endogenous factors are those things that are described in the model under study, while exogenous are those factors that are determined from outside the model being examined. When coming up with models to explain certain economic outcomes, the exogenous factors are not factored because they change. When outcomes turn out differently, these factors are used to explain the outcome. Endogenous factors can vary but to a smaller extent than exogenous factors. They are often theoretic factors that can be plotted on models, and they explain the expected outcomes. Endogenous and exogenous factors relate in the following way; when an endogenous change occurs, it causes an exogenous factor to come into play. The same is true if the case is reversed. Exogenous factors also cause endogenous factors to cause certain outcomes on economic models