Asymptotic Theory Under Network Stationarity

This paper develops an asymptotic theory for network data based on the concept of network stationarity, explicitly linking network topology with the dependence between network entities. Each pair of entities is assigned a class based on a bivariate graph statistic. Network stationarity assumes that conditional covariances depend only on the assigned class. The asymptotic theory, developed for a growing network, includes laws of large numbers, consistent autocovariance function estimation, and a central limit theorem. A significant portion of the assumptions concerns random graph regularity conditions, particularly those related to class sizes. Weak dependence assumptions use conditional α-mixing adapted to networks. The proposed framework is illustrated through an application to microfinance data from Indian villages.