Showing 1 - 10 of 204
the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial …We document that trust in public institutions--and particularly trust in banks, business and government--has declined … over recent years. U.S. time series evidence suggests that this partly reflects the pro-cyclical nature of trust in …
Persistent link: https://www.econbiz.de/10008925712
elicit people’s trust correlate well with behaviourally exhibited trust in the experiment. People above the age of 65, highly … the power of our approach with the analysis of trust and trustworthiness in Germany by combining representative survey … data with representative behavioural data from a social dilemma experiment. We identify which survey questions intended to …
Persistent link: https://www.econbiz.de/10005661984
. We first show that trust of second-generation Americans is significantly influenced by the country of origin of their … attitudes. We show that trust inherited by second-generation Americans from their country of origins has changed over time. This … result allows us to use the inherited trust of second-generation Americans as a time-varying instrument to track back the …
Persistent link: https://www.econbiz.de/10005124005
Consider a seller and a buyer who write a contract. After that, the seller produces a good. She can influence the expected quality of the good by making unobservable investments. Only the seller learns the realized quality. Finally, trade can occur. It is always ex post efficient to trade. Yet,...
Persistent link: https://www.econbiz.de/10008458298
This paper discusses the optimal organization of sequential agency problems with contractible control actions under limited liability. In each of two stages, a risk-neutral agent can choose an unobservable effort level. A success in the first stage makes effort in the second stage more...
Persistent link: https://www.econbiz.de/10005791951
A risk averse agent gathers information on productivity shocks and produces accordingly on behalf of his principal. Information gathering is imperfect so that the agent has either complete or no knowledge at all of those shocks. The model allows for moral hazard in information gathering, private...
Persistent link: https://www.econbiz.de/10011083674
We consider an economy where individuals privately choose effort and trade competitively priced securities that pay off with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then standard functional form restrictions ensure that...
Persistent link: https://www.econbiz.de/10011084065
This paper aims to show that culture is an important determinant of the effectiveness of formal democratic institutions, such as elections. We collect new data to document the presence of voluntary and social organizations and the history of electoral reforms in Chinese villages. We use the...
Persistent link: https://www.econbiz.de/10011213313
transmission tends to be biased toward excessively conservative priors. As a result, societies can be trapped in a low-trust … equilibrium. In this context, a temporary shock to the return to trusting can have a permanent effect on the level of trust. We …
Persistent link: https://www.econbiz.de/10005791467
In this paper we characterize a situation in which non-calculative trust has to play a role in the decision to …
Persistent link: https://www.econbiz.de/10005792217