THE ANALYSIS PROVIDES A DIRECT TEST OF THREE COROLLARIES DERIVED FROM THE CULTURAL TRANSMISSION THEORY OF DELINQUENCY. THE COROLLARIES ARE THAT THE INCIDENCE OF DELINQUENCY WILL BE HIGHER IN NEIGHBORHOODS UNDERGOING RAPID RACIAL OR ETHNIC SUCCESSION, IN NEIGHBORHOODS WHERE CONTACTS WITH ADULT CRIMINALS AND DELINQUENT FRIENDS ARE MOST LIKELY, AND IN NEIGHBORHOODS WHERE THERE IS GREATER EXPOSURE TO NORMS SUPPORTIVE OF ILLEGAL BEHAVIOR. STUDY FINDINGS SHOW THAT DELINQUENCY IS MORE COMMON IN THE RACIALLY CHANGING NEIGHBORHOOD THAN IN THE TWO MORE RACIALLY STABLE NEIGHBORHOODS. HOWEVER, OTHER FINDINGS FAIL TO SUPPORT THE CULTURAL TRANSMISSION THEORY. DELINQENCY IS LEAST COMMON IN THE NEIGHBORHOOD IN WHICH CRIMINAL INFLUENCES ARE MOST PRONOUNCED. THIS SEEMING ANOMALY IS DISCUSSED AND INTERPRETED IN TERMS OF A REFORMULATION OF THE DIFFERENTIAL ASSOCIATION THEORY. IMPLICATIONS OF THE FINDNGS ARE DISCUSSED. SUPPORTING DATA AND A LIST OF REFERENCES ARE INCLUDED. (AUTHOR ABSTRACT MODIFIED-LKM)