  We compute quasar-galaxy and AGN-galaxy cross-correlation functions for
samples taken from the \cite{VCV98} catalog of quasars and active galaxies,
using tracer galaxies taken from the Edinburgh/Durham Southern Catalog. The
sample of active galaxy targets shows positive correlation at projected
separations $r_p < 6 h^{-1} Mpc$ consistent with the usual power-law. On the
other hand, we do not find a statistically significant positive quasar-galaxy
correlation signal except in the range $3 h^{-1} Mpc < r_p < 6 h^{-1} Mpc$
where we find similar AGN-galaxy and quasar-galaxy correlation amplitudes. At
separations $r_p<3 h^{-1} Mpc$ a strong decline of quasar-galaxy correlations
is observed, suggesting a significant local influence of quasars in galaxy
formation. In an attempt to reproduce the observed cross-correlation between
quasars and galaxies, we have performed CDM cosmological hydrodynamical
simulations and tested the viability of a scenario based on the model developed
by \cite{silkrees98}. In this scheme a fraction of the energy released by
quasars is considered to be transferred into the baryonic component of the
intergalactic medium in the form of winds. The results of the simulations
suggest that the shape of the observed quasar-galaxy cross-correlation function
could be understood in a scenario where a substantial amount of energy is
transferred to the medium at the redshift of maximum quasar activity.
