The mid-term real interest rate is also included as an exogenous variable
, along with losses and GDP.
Then along with these exogenous variables
each infrastructure indicator is introduced separately, in Equations (2) to (5) respectively.
In our empirical analysis, we treat the degree of unionisation of members of parliament as an exogenous variable
Note: Bold text denotes exogenous variable
is indicated with #.
In the above equations, which apply to individual NSDUH respondents (with the corresponding observation-level subscript suppressed), vectors X and Z represent sets of exogenous variables
that affect both drinking and enrollment (X), and drinking but not enrollment (Z), [omega] and [epsilon] are error terms that encompass all factors influencing the corresponding dependent variable that are not explicitly controlled for on the right hand side of the equations, and the [alpha]'s and [beta]'s are parameters to be estimated.
Figure 2 illustrates the path coefficients from the exogenous and endogenous variables included in the model and also the correlations among the exogenous variables
The implied equilibrium relationships also line up well with log-level vote shares when adjusted for estimated impact of the civil rights variable, which is statistically significant as an exogenous variable
(Models 5-8, Table 4).
We first present an overidentified long-run vector error correction model with exogenous variables
(VECX* model) and use it for forecasting.
The inclusion of property rights as an exogenous variable
in the regressions made the coefficients of physical capital accumulation and population growth decline and lose statistical strength.
192 (about 16 percent lower) when the exogenous variable
The coefficient estimate refers to the total effect of change in any exogenous variable
on a dependent variable of interest.
Their broad conclusion, based on model estimation and growth accounting, is that long-run growth is significantly correlated with behavioral variables such as savings rates and population growth rates, and that this correlation is not explained easily by models (such as the Ramsey model) in which growth is treated as the exogenous variable