preferences such as risk preference, and crucial beliefs about the world, such as trust. This paper provides evidence on the three …

factors that affect trust at a local level (‘localised trust’) and at a national level (‘generalised trust’). Trust is … neighbourhood level, trust is higher in affluent areas, and lower in ethnically and linguistically heterogeneous communities, with … localised trust for both natives and immigrants, and reduces generalised trust only for immigrants. Instrumental variables …

This paper draws on a natural experiment to identify the relationship between income and trust. We use a unique panel … instrumenting average regional income, we find that the effect of income on generalized social trust (the share of respondents … determinants of trust, we show that 10 percent decrease in income is associated with 5 percentage point decrease in trust. Given …

there exists a distribution of resources such that democracy emerges in equilibrium, but there are distributions of … resources for which democracy is infeasible in equilibrium irrespective of the level of development. The model also delivers … results on the stability of democracy with regard to changes in the economic and demographic environment. The results are …

and cannot be more easily financed by borrowing from the financial market. Democracy appears to affect the pace of reform …