An endogenous variable is a variable in an economic model that is determined or changed by other variables within the same model. In other words, the values of endogenous variables depend on their relationship and interactions with other variables within the model.
Let’s take a look at a model of a firm's production and sales. The endogenous variables include the firm's output level, sales revenue, and profit. They are influenced by various internal factors, such as the firm's production capacity, cost of inputs, and pricing strategy. For instance, if a firm decides to invest in new technology to increase production capacity, the output level and profit are likely to change.
Endogenous variables are components of economic models that are determined by the internal interactions between variables within them. Examples of endogenous variables include the price and quantity of a good. In the context of crypto, endogenous variables include the price of a cryptocurrency and the hash rate.