titleWasserstein-Barycentric Interaction Fields for Spatial Factor Models: Evidence from Language-Model Representations
authorsMarcus Gawronsky, Chun-Sung Huang
date2026-08-30
venuearXiv (preprint, not peer reviewed)
idarXiv:2608.29669
affiliationUniversity of Cape Town
upvotes2 (Hugging Face Daily Papers, 2026-11-01)
linksabs pdf hf
abstractSpatial return models take the interaction matrix as given and leave feedback uninterpreted. We construct a bandwidth-free field from firms' language-model article embedding distributions using target-anchored Wasserstein barycentric reconstruction. A quadratic exposure-adjustment problem maps feedback into a peer-misalignment penalty ratio. For 52 firms, the field, frozen from 2018-2022 news, yields a 2023-2026 penalty ratio of 3.46 (95% interval [2.89, 4.17]) and higher conditional quasi-likelihood than equal-weighted peer support or RBF weighting of the same distances. Joint penalty ratios for the barycentric and news co-mention fields are 2.33 and 0.86 with boundary calibrated tests which reject both exclusions.

cite

@misc{gawronsky2026wasserstein,
  title={Wasserstein-Barycentric Interaction Fields for Spatial Factor Models: Evidence from Language-Model Representations},
  author={Marcus Gawronsky and Chun-Sung Huang},
  year={2026},
  eprint={2608.29669},
  archivePrefix={arXiv},
  url={https://arxiv.org/abs/2608.29669}
}