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 …

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 …

capital and trust (Banfield (1958), Putnam (1993)) across different parts of Italy, using microeconomic data on households and … firms. In areas of the country with high levels of social trust, households invest less in cash and more in stock, use more … more access to credit and are more likely to have multiple shareholders. The effect of trust is stronger where legal …