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Like Father, Like Son: Social Network Externalities and Parent-Child Correlation in Behavior

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Author Info

  • Antoni Calvó-Armengol
  • Matthew O. Jackson

Abstract

We build an overlapping generations model where an individual sees higher returns to adopting a behavior as many neighbors adopt the behavior. We show that overlap in the state of a parent and child's neighborhood can lead to correlation in parent-child behavior independent of any parent-child interaction. Increasing the sensitivity of individual decisions to the state of their social community leads to increased parent-child correlation and less efficient (more costly) behavior on average in the society. We show this model is distinguished from a direct parental influence model, in that it predicts increased generational effects, implying residual correlation between children and grandparents after including parental information. (JEL J12, J13, Z13)

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/mic.1.1.124
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Journal: Microeconomics.

Volume (Year): 1 (2009)
Issue (Month): 1 (February)
Pages: 124-50

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Handle: RePEc:aea:aejmic:v:1:y:2009:i:1:p:124-50

Note: DOI: 10.1257/mic.1.1.124
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  1. Mills, C. Wright, 1945. "The American Business Elite: A Collective Portrait," The Journal of Economic History, Cambridge University Press, vol. 5(S1), pages 20-44, December.
  2. Card, David & Krueger, Alan B, 1992. "School Quality and Black-White Relative Earnings: A Direct Assessment," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 151-200, February.
  3. Steven N. Durlauf, 1992. "A Theory of Persistent Income Inequality," NBER Working Papers 4056, National Bureau of Economic Research, Inc.
  4. Thomas Piketty, 1994. "Social Mobility and Redistributive Politics," Working papers 94-15, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
  6. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
  7. Abhijit Banerjee & Andrew F. Newman, 1989. "Risk-Bearing and the Theory of Income Distribution," Discussion Papers 877, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  8. Alberto Bisin & Thierry Verdier, 2000. ""Beyond The Melting Pot": Cultural Transmission, Marriage, And The Evolution Of Ethnic And Religious Traits," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 955-988, August.
  9. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October.
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Citations

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Cited by:
  1. Begoña Álvarez & Daniel Miles, 2009. "Building gender roles: Do children learn from their parents?," Working Papers 0906, Universidade de Vigo, Departamento de Economía Aplicada.
  2. Michel Grabisch & Agnieszka Rusinowska, 2013. "A Model of Influence Based on Aggregation Function," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00906367, HAL.
  3. repec:hal:journl:halshs-00639677 is not listed on IDEAS
  4. Förster, Manuel & Grabisch, Michel & Rusinowska, Agnieszka, 2013. "Anonymous social influence," Games and Economic Behavior, Elsevier, vol. 82(C), pages 621-635.
  5. Manuel Förster & Michel Grabisch & Agnieszka Rusinowska, 2012. "Ordered Weighted Averaging in Social Networks," Post-Print halshs-00746988, HAL.
  6. Manuel Förster & Michel Grabisch & Agnieszka Rusinowska, 2012. "Ordered Weighted Averaging in Social Networks," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00746988, HAL.
  7. Simon Burgess & Eleanor Sanderson & Marcela Umana-Aponte, 2011. "School ties: An analysis of homophily in an adolescent friendship network," The Centre for Market and Public Organisation 11/267, Department of Economics, University of Bristol, UK.

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