EXOGENOUS variable < initial-values > … ;

The EXOGENOUS statement declares model variables and identifies them as exogenous. You can declare model variables with an EXOGENOUS statement instead of with a VAR statement to help document the model or to indicate the default instrumental variables. The variables declared exogenous are used as instruments when an instrumental variables estimation method is requested (such as N2SLS or N3SLS) and an INSTRUMENTS statement is not used. Valid abbreviations for the EXOGENOUS statement are EXOG and EXO.

The INDEPENDENT statement is equivalent to the EXOGENOUS statement and is provided for the convenience of non-econometric practitioners.

The EXOGENOUS statement optionally provides initial values for lagged exogenous variables. See the section Lag Logic for more information.