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The SAGE Encyclopedia of Social Science Research Methods

Michael S. Lewis-Beck & Alan Bryman & Tim Futing Liao

Pub. date: 2004 | DOI:

Print ISBN: 9780761923633 | Online ISBN: 9781412950589

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Encyclopedia Entry

Predetermined Variable

Cheng-Lung Wang

The exogenous variables and lagged ENDOGENOUS VARIABLES included in a SIMULTANEOUS EQUATION MODEL are typically called predetermined variables. The classification of variables is crucial for model identification because there are endogenous variables among the independent (or explanatory) variables in a system of SIMULTANEOUS EQUATIONS. To introduce the idea of predetermined variables, one must distinguish between endogenous variables and exogenous variables. Endogenous variables (or jointly determined variables) have outcomes values determined within the model. In other words, endogenous variables have values that are determined through joint interaction with other variables within the model. One is interested in the behavior of endogenous variables endogeneity ...

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