Smoking, like many health-related behaviors, has "social" aspects. The smoking habits of my neighbors are likely to shape my own smoking habits, due to what is known in economics as “peer effects.” These complementarities in behavior may result from emulation, joint consumption, conformism,...

We propose a model of intergenerational transmission of education wherein children belong to either highly educated or low-educated families. Children choose the intensity of their social activities while parents decide how much educational effort to exert. Using data on adolescents in the...