what is endogeneity in econometrics 
an endogenous variable is a variable that is influenced by changes in another variable due to the complexity of economic systems it is difficult to determine all of the subtle relationships between different factors and some variables may be partially endogenous and partially exogenous in econometric studies the researchers must be careful to account for the possibility that the error term may be partially correlated with other variables the bottom lineeconometrics is a popular discipline that integrates statistical tools and modeling for economic data and it is frequently used by policymakers to forecast the result of policy changes like with other statistical tools there are many possibilities for error when econometric tools are used carelessly econometricians must be careful to justify their conclusions with sound reasoning as well as statistical inferences 