Butler, Jeffrey; Giuliano, Paola; Guiso, Luigi - Fondazione ENI Enrico Mattei (FEEM) - 2010
We investigate the relationship between individual trust and individual economic performance. We find that individual … income is hump-shaped in a measure of intensity of trust beliefs. Heterogeneity of trust beliefs in the population, coupled … cheated, but give up profitable opportunities, therefore underperforming. The cost of either too much or too little trust is …