1
$\begingroup$

What's the difference? Exogenous vs. Endogenous identifiers.

$\endgroup$

1 Answer 1

1
$\begingroup$

In the first step, you project all the predictors (endogenous and exogenous) onto the space of exogenous predictors only. By a property of projection operator, the projection of exogenous $X_j$ is $X_j$ again. So formally speaking, you do "replace" but in reality, nothing happens.

$\endgroup$
0

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.

Not the answer you're looking for? Browse other questions tagged or ask your own question.