I propose a model of cultural transmission where children interact strategically with each other with the only desire to fit in, and parents purposefully socialize their children to their own culture. In the empirical section I estimate parental and peer effects using US teenager data on...

I study the diffusion process of permanent disinflationary shocks in the Mexican economy using disaggregated price data for 283 goods across 46 cities in the period 1995-2012. I first show that the distribution of shocks shows considerable heterogeneity, with more than 80% of all cases having...