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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)

Suggested Citation

  • Antoni Calvó-Armengol & Matthew O. Jackson, 2009. "Like Father, Like Son: Social Network Externalities and Parent-Child Correlation in Behavior," American Economic Journal: Microeconomics, American Economic Association, vol. 1(1), pages 124-150, February.
    • 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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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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