To trust is to risk. When we lend someone money, we make ourselves vulnerable, hoping or expecting that the borrower … will reward our trust and return the money at a later stage, possibly with interest or a reciprocal favor added. This paper … examines whether willingness to trust follows the same logic, that is, whether it responds to changes in the expected value of …

This study shows that the level of trust matters for how corruption affects public policy outcomes in the long run, in … particular with regard to the stringency of environmental policies. We argue that the level of trust affects the relative …-run cointegrating relationship between environmental policy, corruption, and trust using Dynamic OLS. We find that higher corruption …