ARIMAX, short for AutoRegressive Integrated Moving Average with eXogenous variables, is a versatile time series forecasting model that integrates external (exogenous) variables to enhance prediction accuracy.
Exogenous expectations refer to expectations that are not determined by the parameters of the economic system and are not systematically revised. These expectations play a crucial role in economic models and decision-making processes.
A comprehensive overview of Reduced Form, a formulation of simultaneous equations models where current endogenous variables are expressed in terms of exogenous and predetermined endogenous variables, including historical context, key events, mathematical formulations, and more.
A scenario is a set of assumptions on policy choices and the values of exogenous variables used to predict future developments in an economy. By varying these assumptions, alternative scenarios can be created to evaluate the effects of different policies and the robustness of conclusions to alternative values of exogenous variables.
A comprehensive look at the Simultaneous Equations Model (SEM), an econometric model that describes relationships among multiple endogenous variables and exogenous variables through a system of equations.
