8) In a VECM framework, two channels of causality can be identified: the traditional channel of causality through the lagged changes of exogenous variables
(short-term causal effect) and a second channel through the lagged error-correction term (durable, long-term causality).
The forecasts for the exogenous variables
are from a marginal model that regresses the change in the exogenous variables
The equation in column 4 already contains the simultaneity-corrected coefficients for the exogenous variables
I apply the approach to a simple three-variable VAR and, not surprisingly, the additional exogenous variable
is only a significant predictor of the monthly federal funds rate, not inflation or unemployment.
Finally, substitute products are often entered as exogenous variables
in demand models of this nature.
NOTE: RMR = root mean square residual; AGFI: adjusted goodness-of-fit index; (1) null structural model = latent factors specified, path coefficients between exogenous variables
, mediating constructs, and outcomes fixed to 0; (2) direct influence = exogenous variables
affect the outcomes directly; (3) mediation 1 = effects of exogenous variables
are mediated by emotional unresponsiveness; (4) mediation 2 = effects of exogenous variables
are mediated by emotional unresponsiveness and physical discipline; (5) mediation 3 = effects of exogenous variables
are mediated by emotional unresponsiveness, physical discipline, and fewer stimulating experiences; (6) hypothesized = model in Figure 1, effects of exogenous variables
are mediated by all four parenting constructs.
Suppose that, instead of the value assigned to an exogenous variable
in the base economic projection for the period 1997 to 2006, a value 10 percent larger was assigned each year during that period.
First the ICE was treated as an exogenous variable
in a single-equation estimate of current expenditures on durable goods (EDG).
A single-equation model indicating that team revenue is a function of WP, hometown population, and other exogenous variables
ignores the possible feedback of team revenue on win percent.
In this paper, we argue that exchange rates and stock prices are both endogenous variables, and thus their long-term relationship should be dependent on the type of the predominant exogenous variable
that would cause changes in these variables.
The exchange rate is an exogenous variable
in the RIMINI model, which means that it must be determined by the model user when he/she makes the projections.
Sass and Gisser (1989) and Regan (1997) test advertising as both an endogenous and exogenous variable
in the determinants of distribution system choice, and find no significant difference in outcomes based on the treatment of this variable.
if resistance, adoption, and diffusion essentially represent the same concept), the estimation results of the three models would look very similar, because each exogenous variable
should have a similar effect on all of the three dependent variables.
In furthers, Government Support whereby the only one exogenous variable
applied is perceived fail to provide a significant impact on Motivation.
The scenarios for each exogenous variable
are combined to give nine combinations as shown in table 10.