### Abstract

We provide a new central limit theorem (CLT) for spatial processes under weak conditions that are plausible for many economic applications in which location is endogenous. In particular, our CLT is designed for problems that have some, but not necessarily all, of the following features: (i) Agents choose the locations of observations to maximize profits, welfare, or some other objective. (ii) The objects that are chosen (e.g., stores or brands) interact with one another. For example, they can be substitutes or complements. (iii) Interaction can be complex. In particular, interaction between i and j need not depend only on the distance between the locations of i and j, but can also depend on distance to or location of other observations k, or possibly on the number of other such observations.

Original language | English (US) |
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Pages (from-to) | 215-225 |

Number of pages | 11 |

Journal | Journal of Econometrics |

Volume | 140 |

Issue number | 1 |

DOIs | |

State | Published - Sep 1 2007 |

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### All Science Journal Classification (ASJC) codes

- Economics and Econometrics
- Applied Mathematics
- History and Philosophy of Science

### Cite this

*Journal of Econometrics*,

*140*(1), 215-225. https://doi.org/10.1016/j.jeconom.2006.09.008

}

*Journal of Econometrics*, vol. 140, no. 1, pp. 215-225. https://doi.org/10.1016/j.jeconom.2006.09.008

**A central limit theorem for endogenous locations and complex spatial interactions.** / Pinkse, Joris; Shen, Lihong; Slade, Margaret.

Research output: Contribution to journal › Article

TY - JOUR

T1 - A central limit theorem for endogenous locations and complex spatial interactions

AU - Pinkse, Joris

AU - Shen, Lihong

AU - Slade, Margaret

PY - 2007/9/1

Y1 - 2007/9/1

N2 - We provide a new central limit theorem (CLT) for spatial processes under weak conditions that are plausible for many economic applications in which location is endogenous. In particular, our CLT is designed for problems that have some, but not necessarily all, of the following features: (i) Agents choose the locations of observations to maximize profits, welfare, or some other objective. (ii) The objects that are chosen (e.g., stores or brands) interact with one another. For example, they can be substitutes or complements. (iii) Interaction can be complex. In particular, interaction between i and j need not depend only on the distance between the locations of i and j, but can also depend on distance to or location of other observations k, or possibly on the number of other such observations.

AB - We provide a new central limit theorem (CLT) for spatial processes under weak conditions that are plausible for many economic applications in which location is endogenous. In particular, our CLT is designed for problems that have some, but not necessarily all, of the following features: (i) Agents choose the locations of observations to maximize profits, welfare, or some other objective. (ii) The objects that are chosen (e.g., stores or brands) interact with one another. For example, they can be substitutes or complements. (iii) Interaction can be complex. In particular, interaction between i and j need not depend only on the distance between the locations of i and j, but can also depend on distance to or location of other observations k, or possibly on the number of other such observations.

UR - http://www.scopus.com/inward/record.url?scp=34547554087&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=34547554087&partnerID=8YFLogxK

U2 - 10.1016/j.jeconom.2006.09.008

DO - 10.1016/j.jeconom.2006.09.008

M3 - Article

AN - SCOPUS:34547554087

VL - 140

SP - 215

EP - 225

JO - Journal of Econometrics

JF - Journal of Econometrics

SN - 0304-4076

IS - 1

ER -