This paper investigates the relationship between trust and macroeconomic volatility. In a cross section of countries …, we show that higher trust is associated with lower macroeconomic instability. We use the inherited trust of Americans as … an instrumental variable of trust in their origin country to overcome all potential reverse causality concerns. We use …

This paper documents the co-evolution of social capital, measured as generalized trust, and financial development over … the twentieth century. I use cross generations inherited trust of Americans with foreign ancestors to track trust in their … home country in 1913 and 1990. The paper documents a positive cross-section relationship between trust and financial …