A central limit theorem for endogenous locations and complex spatial interactions

Joris Pinkse, Lihong Shen, Margaret Slade

Research output: Contribution to journalArticle

15 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)215-225
Number of pages11
JournalJournal of Econometrics
Volume140
Issue number1
DOIs
StatePublished - Sep 1 2007

Fingerprint

Central limit theorem
Interaction
Spatial Process
Welfare
Substitute
Profit
Profitability
Complement
Choose
Maximise
Economics
Spatial interaction
Central Limit Theorem
Observation

All Science Journal Classification (ASJC) codes

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

Cite this

Pinkse, Joris ; Shen, Lihong ; Slade, Margaret. / A central limit theorem for endogenous locations and complex spatial interactions. In: Journal of Econometrics. 2007 ; Vol. 140, No. 1. pp. 215-225.
@article{739daa2a35fd4051a54a4e7b7c72a2f5,
title = "A central limit theorem for endogenous locations and complex spatial interactions",
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.",
author = "Joris Pinkse and Lihong Shen and Margaret Slade",
year = "2007",
month = "9",
day = "1",
doi = "10.1016/j.jeconom.2006.09.008",
language = "English (US)",
volume = "140",
pages = "215--225",
journal = "Journal of Econometrics",
issn = "0304-4076",
publisher = "Elsevier BV",
number = "1",

}

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

In: Journal of Econometrics, Vol. 140, No. 1, 01.09.2007, p. 215-225.

Research output: Contribution to journalArticle

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 -