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Normal Approximation in Large Network Models

delete2026-03-01
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PRE
AI
M
Michael P. Leung *
H
Hyungsik Roger Moon
DOI:10.1093/restud/rdag022delete
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Abstract

Abstract

En 中文
We prove a central limit theorem for network formation models with strategic interactions and homophilous agents. Since data often consists of observations on a single large network, we consider an asymptotic framework in which the network size diverges. We argue that a modification of stabilization conditions from the literature on geometric graphs provides a useful high-level formulation of weak dependence which we utilize to establish an abstract central limit theorem. Using results in branching process theory, we derive interpretable primitive conditions for stabilization. The main conditions restrict the strength of strategic interactions and equilibrium selection mechanism. We discuss practical inference procedures justified by our results.
Keywords:
Social networks
Strategic interactions
Weak dependence
Network formation

Journal

Review of Economic Studies cover
Review of Economic Studies
IF:
6.4
Papers:
2.5K
Citations:
2.1W

Organization

U
university of california santa cruz
Scholars:
8.6K
Papers: 6.8K
Citations: 32
University of California System cover
University of California System
Scholars:
37.5W
Papers: 33.7W
Citations: 6.6K