Guiso, Luigi; Sapienza, Paola; Zingales, Luigi - Department of Economics, European University Institute - 2007
How much do cultural biases affect economic exchange? We try to answer this question by using the relative trust … European citizens have for citizens of other countries. First, we document that this trust is affected not only by objective … trust toward citizens of a country lead to less trade with that country, less portfolio investment, and less direct …