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

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  • 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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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. 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.
  2. Simona Comi, 2004. "Intergenerational mobility in Europe: evidence from ECHP," CHILD Working Papers wp18_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  3. Banerjee, Abhijit V & Newman, Andrew F, 1991. "Risk-Bearing and the Theory of Income Distribution," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 211-35, April.
  4. Steven N. Durlauf, 1992. "A Theory of Persistent Income Inequality," NBER Working Papers 4056, National Bureau of Economic Research, Inc.
  5. Piketty, Thomas, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 551-84, August.
  6. 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.
  7. David Card & Alan B. Krueger, 1991. "School Quality and Black-White Relative Earnings: A Direct Assessment," NBER Working Papers 3713, National Bureau of Economic Research, Inc.
  8. 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..
  9. 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.
  10. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
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Cited by:
  1. repec:hal:journl:halshs-00746988 is not listed on IDEAS
  2. 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.
  3. Begoña Álvarez & Daniel Miles, 2009. "Building gender roles: Do children learn from their parents?," Working Papers 0906, Universidade de Vigo, Departamento de Economía Aplicada.
  4. Michel Grabisch & Agnieszka Rusinowska, 2011. "A model of influence based on aggregation functions," Documents de travail du Centre d'Economie de la Sorbonne 11058, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  5. 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.
  6. Begoña Álvarez & Daniel Miles-Touya, 2012. "Exploring the relationship between parents’ and children’s housework time in Spain," Review of Economics of the Household, Springer, vol. 10(2), pages 299-318, June.
  7. Manuel Foerster & Michel Grabisch & Agnieszka Rusinowska, 2013. "Anonymous social influence," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-00913235, HAL.
  8. repec:hal:journl:halshs-00639677 is not listed on IDEAS
  9. repec:hal:cesptp:halshs-00906367 is not listed on IDEAS

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