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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. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
  2. David Card & Alan Krueger, 1990. "School Quality and Black/White Relative Earnings: A Direct Assessment," Working Papers 652, Princeton University, Department of Economics, Industrial Relations Section..
  3. Durlauf, S.N., 1992. "A Theory of Persistent Income Inequality," Papers 47, Stanford - Institute for Thoretical Economics.
  4. 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.
  5. 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.
  6. Simona Comi, 2003. "Intergenerational mobility in Europe: evidence from ECHP," Departmental Working Papers 2003-03, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  7. Bisin, A. & Verdier, T., 1999. "Beyond the Melting Pot: Cultural Transmission, Marriage, and the Evolution of Ethnic and Religious Traits," Papers 1999-10, Laval - Laboratoire Econometrie.
  8. Thomas Piketty, 1994. "Social Mobility and Redistributive Politics," Working papers 94-15, Massachusetts Institute of Technology (MIT), Department of Economics.
  9. 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..
  10. 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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Cited by:
  1. 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.
  2. Förster, Manuel & Grabisch, Michel & Rusinowska, Agnieszka, 2013. "Anonymous social influence," Games and Economic Behavior, Elsevier, vol. 82(C), pages 621-635.
  3. 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.
  4. repec:hal:journl:halshs-00639677 is not listed on IDEAS
  5. repec:hal:journl:halshs-00746988 is not listed on IDEAS
  6. repec:hal:cesptp:halshs-00906367 is not listed on IDEAS
  7. repec:hal:cesptp:halshs-00639677 is not listed on IDEAS
  8. 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.
  9. 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.
  10. Begoña Álvarez & Daniel Miles, 2009. "Building gender roles: Do children learn from their parents?," Working Papers 0906, Universidade de Vigo, Departamento de Economía Aplicada.
  11. Manuel Förster & Michel Grabisch & Agnieszka Rusinowska, 2012. "Ordered Weighted Averaging in Social Networks," Documents de travail du Centre d'Economie de la Sorbonne 12056, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

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