A variable whose values vary based on a functional relationship in a model. An example is consumption expenditure and income are variables functionally related (endogenous) to a model of income determination. Basically, these are dependent variables generated within a model. See also exogenous variable.
Link to This DefinitionDid you find this definition of ENDOGENOUS VARIABLE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary