An Exogenous variable‘s variation is assumed to be caused by influences outside the hypothesized model. No attempt is made to explain the variation of an exogenous variable or its relationship with other exogenous variables. In other words, no one-headed arrows point to them. An endogenous variable, on the other hand, is a variable whose variation is explained in the model by exogenous or other endogenous variables. A one-headed arrow points to them. This is very similar to the idea of independent and dependent variables but is more versatile (generic).
Last Modified: 02/14/2019