Child Development, March/April 2008, Volume 79, Number 2, Pages 359 – 374 The Interplay of Social Competence and Psychopathology Over 20 Years: Testing Transactional and Cascade Models Keith B. Burt University of Vermont Jelena Obradovic ´, Jeffrey D. Long, and Ann S. Masten University of Minnesota, Twin Cities Associations among internalizing, externalizing, and social competence were examined in a longitudinal cohort (N 5 205) of 8- to 12-year-old children reassessed after 7, 10, and 20 years. Theoretically informed nested structural equation models tested interconnections among broad multi-informant constructs across four developmental periods. Follow-up analyses examined gender invariance, measurement and age effects, and putative common causes. Key model comparisons indicated robust negative paths from social competence to internalizing problems from childhood to adolescence and from emerging adulthood to young adulthood. Social competence and externalizing problems showed strong initial associations in childhood but no longitudinal cross-domain paths. Using a developmental psychopathology framework, results are discussed in relation to cascade and transactional effects and the interplay between competence and symptoms over time. The interplay of competence and psychopathology, intriguing to developmental and clinical researchers for decades, has come under increased scrutiny with the emergence of developmental psychopathology, resilience theory, positive psychology, and prevention science (Masten, Burt, & Coatsworth, 2006). There is growing recognition that cross-domain effects may reflect processes with significance not only for under- standing the etiology and consequences of mental health problems but also for intervening to promote competence and prevent or ameliorate symptoms of psychopathology (Masten et al., 2006; Rutter, Kim- Cohen, & Maughan, 2006). Nonetheless, few empiri- cal studies have examined such effects, particularly with informative longitudinal designs. The present study addresses gaps in the extant literature by examining longitudinal links among social compe- tence, externalizing problems, and internalizing prob- lems across four developmental periods (childhood to young adulthood) in a longitudinal school-based sample using latent variable methods. Social competence—how well one functions in relation to other people, particularly with respect to getting along with others and forming close relation- ships—has been a frequent target of research on connections between competence and psychopathol- ogy. From early dyadic relationships with caregivers, to play and social interaction with peers in the preschool years, to the formation of peer networks, close friends, and romantic relationships, social competence is viewed as a primary component of healthy functioning and development (Ladd, 1999; Parker, Rubin, Erath, Wojslawowicz, & Buskirk, 2006; Rubin, Bukowski, & Parker, 2006; Sroufe, Egeland, & Carlson, 1999) and occupies a central role in developmental task theory (Havighurst, 1948/1972; Masten & Coatsworth, 1998; Sroufe, 1979). At the same time, social problems are salient in the diagnos- tic and impairment criteria for many mental disorders (American Psychiatric Association, 2000). There are several major reasons why social com- petence and psychopathology (including externaliz- ing and internalizing problems) might become associated over time. Symptoms of mental health problems could undermine social competence, while failures or achievements in the social domain could alter symptoms in numerous ways (Hinshaw, 1992; Masten et al., 2005, 2006; Patterson, Reid, & Dishion, 1992). Difficulties processing social infor- mation, as well as socially inappropriate behavior This article is based on data collected as part of the Project Competence longitudinal study, which has been supported through grants to A.S.M., Auke Tellegen, and Norman Garmezy from the William T. Grant Foundation, the National Science Foundation (SBR-9729111), the National Institute of Mental Health (R01MH33222), and the University of Minnesota. The authors express their deep appreciation to the participants for their many contributions to this endeavor over more than 20 years. Jelena Obradovic ´ is a Killam Postdoctoral Fellow at the University of British Columbia, Vancouver. Correspondence concerning this article should be addressed to Keith B. Burt, Department of Psychology, University of Vermont, 2 Colchester Drive, Burlington, VT 05405. Electronic mail may be sent to Keith.Burt@uvm.edu. # 2008, Copyright the Author(s) Journal Compilation # 2008, Society for Research in Child Development, Inc. All rights reserved. 0009-3920/2008/7902-0008