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We develop a behavioral asset pricing model in which agents trade in a market with information friction. Profit-maximizing agents switch between trading strategies in response to dynamic market conditions. Due to noisy private information…

Trading and Market Microstructure · Quantitative Finance 2019-05-02 Zhentao Shi , Huanhuan Zheng

Samples of dynamic or time-varying networks and other random object data such as time-varying probability distributions are increasingly encountered in modern data analysis. Common methods for time-varying data such as functional data…

Methodology · Statistics 2024-07-23 Paromita Dubey , Hans-Georg Müller

Individuals or companies in a large social or financial network often display rather heterogeneous behaviors for various reasons. In this work, we propose a network vector autoregressive model with a latent group structure to model…

Methodology · Statistics 2023-08-14 Xuening Zhu , Ganggang Xu , Jianqing Fan

Many popular estimation methods in panel data rely on the assumption that the covariates of interest are strictly exogenous. However, this assumption is empirically restrictive in a wide range of settings. In this paper I argue that…

Econometrics · Economics 2025-12-22 Stephane Bonhomme

Economists often rely on estimates of linear fixed effects models produced by other teams of researchers. Assessing the uncertainty in these estimates can be challenging. I propose a form of sample splitting for networks that partitions the…

Econometrics · Economics 2025-12-29 Patrick Kline

Modeling the behavior of coupled networks is challenging due to their intricate dynamics. For example in neuroscience, it is of critical importance to understand the relationship between the functional neural processes and anatomical…

Machine Learning · Computer Science 2021-04-20 Hongyuan You , Sikun Lin , Ambuj K. Singh

This paper integrates deep neural networks (DNNs) into structural economic models to increase flexibility and capture rich heterogeneity while preserving interpretability. Economic structure and machine learning are complements in empirical…

Econometrics · Economics 2025-04-28 Max H. Farrell , Tengyuan Liang , Sanjog Misra

Professional networks -- the social networks among people in a given line of work -- can serve as a conduit for job prospects and other opportunities. Here we propose a model for the formation of such networks and the transfer of…

Computer Science and Game Theory · Computer Science 2024-06-28 Cynthia Dwork , Chris Hays , Jon Kleinberg , Manish Raghavan

We propose an equilibrium interaction model of occupational segregation and labor market inequality between two social groups, generated exclusively through the documented tendency to refer informal job seekers of identical "social color".…

Theoretical Economics · Economics 2022-12-27 I. Sebastian Buhai , Marco J. van der Leij

Networks are often characterized by node heterogeneity for which nodes exhibit different degrees of interaction and link homophily for which nodes sharing common features tend to associate with each other. In this paper, we propose a new…

Methodology · Statistics 2018-03-13 Ting Yan , Binyan Jiang , Stephen E. Fienberg , Chenlei Leng

The interaction patterns of employees in social and professional networks play an important role in the success of employees and organizations as a whole. However, in many fields there is a severe under-representation of minority groups;…

Social and Information Networks · Computer Science 2021-05-17 Zeinab S. Jalali , Krishnaram Kenthapadi , Sucheta Soundarajan

We develop original models to study interacting agents in financial markets and in social networks. Within these models randomness is vital as a form of shock or news that decays with time. Agents learn from their observations and learning…

Mathematical Finance · Quantitative Finance 2023-07-14 Ionel Popescu , Tushar Vaidya

The analysis of network data has gained considerable interest in recent years. This also includes the analysis of large, high-dimensional networks with hundreds and thousands of nodes. While exponential random graph models serve as…

Methodology · Statistics 2023-09-13 Nadja Klein , Göran Kauermann

Agent-based models of opinion dynamics allow one to examine the spread of opinions between entities and to study phenomena such as consensus, polarization, and fragmentation. By studying a model of opinion dynamics on a social network, one…

Physics and Society · Physics 2023-03-22 Grace J. Li , Mason A. Porter

We consider several estimation and learning problems that networked agents face when making decisions given their uncertainty about an unknown variable. Our methods are designed to efficiently deal with heterogeneity in both size and…

Applications · Statistics 2016-11-11 M. Amin Rahimian , Ali Jadbabaie

In this paper, we propose a statistical aggregation method for agent-based models with heterogeneous agents that interact both locally on a complex adaptive network and globally on a market. The method combines three approaches from…

Theoretical Economics · Economics 2020-11-04 Jakob J. Kolb , Finn Müller-Hansen , Jürgen Kurths , Jobst Heitzig

The heterogeneity of the influence processes is an important feature of social systems: how we perceive social influence and how we influence other individuals is heavily influenced by our opinion and non-opinion attributes. The latter…

Social and Information Networks · Computer Science 2022-09-07 Ivan V. Kozitsin

Collaboration networks provide a method for examining the highly heterogeneous structure of collaborative communities. However, we still have limited theoretical understanding of how individual heterogeneity relates to network…

Physics and Society · Physics 2016-07-27 Katharine A. Anderson

The network of interpersonal connections is one of the possible heterogeneous factors which affect the income distribution emerging from micro-to-macro economic models. In this paper we equip our model discussed in [1,2] with a network…

Physics and Society · Physics 2016-11-01 Maria Letizia Bertotti , Giovanni Modanese

A new partial functional linear regression model for panel data with time varying parameters is introduced. The parameter vector of the multivariate model component is allowed to be completely time varying while the function-valued…

Methodology · Statistics 2018-07-18 Dominik Liebl , Fabian Walders