reduced form: A set of equations in which all current endogenous variables are expressed in terms of either exogenous variables or pre-determined ...

Definition: The reduced form of an econometric model has been rearranged algebraically so that each endogenous variable is on the left side of one equation, and only predetermined variables (exogenous variables and lagged endogenous variables) are on the right side.

reduced-form relationships that are insensitive to the required subjective choices and consistent with theoretical predictions.