Silvia Rossetto’s research while affiliated with Université de Toulouse and other places

I study the intergenerational transmission of knowledge in the presence of social externalities associated with individual investment decisions (learn-ing and respecting social norms, cooperation with others, human capital). The younger generation's decisions are based on beliefs about the quality of existing institutions, social norms and values; these beliefs are influenced by the information received from the older generation. I examine whether and when the older generation can engage in welfare-enhancing manipulation of the information transmitted to the younger generation. I then investigate the costs and benefits of having multiple principals involved in the inter-generational transmission of knowledge, and in particular the role of close family ties. Finally, the paper studies the implications of heterogeneous cultural identities for the optimal transmission of knowledge. My findings are consistent with the empirical evidence on the intergen-erational transmission of knowledge and the evolution of collective memory in a variety of countries. JEL classification numbers: D82, D83, Z13., seminar participants in Toulouse and participants at the 2004 Barcelona conference on "Theoretical Perspectives on Identity, Community and Economic Policy" for helpful comments and suggestions. IDEI, Université de Toulouse, Manufacture des Tabacs, Bât.F, 21 Allée de Brienne, 31000 Toulouse, France (dessi@cict.fr).