Alcohol consumption, anxiety, and depression were measured by questionnaire in 572 twin families ascertained from the Institute of Psychiatry (London) normal twin register, each family consisting of an adult twin pair, their parents, and siblings--a total of 1,742 individuals. A multivariate normal model for pedigree analysis was applied to each variable, with power transformations fitted to maximise the fit with distributional assumptions. The effect of shared twin environment was estimated by considering the measured cohabitation history of twin pairs. For log-transformed alcohol consumption, amongst current drinkers this effect was the same for MZ and DZ pairs but depended on the cohabitation status of pairs. For both anxiety and depression the effect was clearly not the same for MZ and DZ pairs. Therefore the basic assumption of the classical twin method appears to be invalid for all three traits. Estimates of heritability derived from these analyses were compared with those obtained (1) by applying the classical twin method to twin data only, and (2) by a pedigree analysis ignoring the effect of shared twin environment. For all variables there were considerable differences between estimates based on the three models. This study illustrates that data from twins and their relatives which includes information on cohabitation history might distinguish shared genes and shared environment as causes of familial aggregation. In these behavioral traits the effect of shared twin environment may depend on zygosity and play a major role in explaining familial aggregation in twin family data.