Editing Exogeny (section)

=== Exogenous factors in econometrics ===
In [[econometrics]], an [[endogeneity (econometrics)|endogenous]] [[random variable]] is [[correlation|correlated]] with the [[Errors and residuals|error term]] in the econometric model, while an exogenous variable is not.<ref>{{cite book |first=Jeffrey M. |last=Wooldridge |author-link=Jeffrey Wooldridge |title=Introductory Econometrics: A Modern Approach |location=Mason |publisher=South-Western |edition=Fourth |year=2009 |isbn=978-0-324-66054-8 |page=49 |url=https://books.google.com/books?id=64vt5TDBNLwC&pg=PA49 }}</ref> However, exogenous variables aid in the explanation of endogenous variable variances. In the preset group, it is typical to include historical values of endogenous variables. Exogenous variables are independent of the model's [[disturbance term]], since they are preset. They meet the same conditions as [[explanatory variables]] do in a traditional [[regression model]].