We develop an explanation of the emergence of local norms, and theassociated phenomenon of geographical variation in behavior.Individuals are assumed to interact locally with neighbors in anenvironment with a network externality. Although many patterns ofbehavior are possible, the dispersed...

We develop a model of occupational choice and entrepreneurship in the presence of relative wealth concerns. A concern for relative standing arises even though individuals care only about consumption of standard commodities. We assume that entrepreneurial returns are not diversifiable, which...

In this paper we analyze a unique micro-level panel data set encompassing all publicschool students in grades 3-10 in the state of Florida for each of the years 1999/2000-2003/2004.We are able to directly link each student and teacher to a specific classroom and can thus identifyeach member of a...