Statistical Equilibrium Models for Sparse Economic Networks
AbstractReal markets can be naturally represented as networks, and they share with other social networks the fundamental property of sparsity, whereby agents are connected by l = O (n) relationships. The exponential networks model introduced by Park and Newman can be extended in order to deal with this property. When compared with alternative statistical models of a given real network, this extended model provides a better statistical justification for the observed network values. Consequently, it provides more reliable maximum entropy estimates of partially known networks than previously known ME techniques.
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Bibliographic InfoPaper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa in its series Working Papers - Economics with number wp2013_25.rdf.
Length: 24 pages
Date of creation: 2013
Date of revision:
Find related papers by JEL classification:
- C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-01-10 (All new papers)
- NEP-ECM-2014-01-10 (Econometrics)
- NEP-NET-2014-01-10 (Network Economics)
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