Question

Give the types of variables.

Answer 1

Variables may be classified into two parts as under:

1. Independent and dependent variables: Independent variables refer to those variables manipulated or changed. While dependent variables provide observed results of independent variables being manipulated.
2. Exogenous and endogenous variables: Exogeneous variables imply those which are determined or set outside the model. These are contrasted by endogeneous variables which are determined inside the model, and their values change when exogeneous variables change.