the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial …We document that trust in public institutions--and particularly trust in banks, business and government--has declined … sector. Finally, analysis of several repeated cross-sections of confidence within U.S. states yields similar qualitative …

In a cross-section of countries, government regulation is strongly negatively correlated with social capital. We … model is that individuals in low trust countries want more government intervention even though the government is corrupt. We … government's role, as well as on changes in beliefs and in trust during the transition from socialism …

integration among European regions. We find regions, where the level of confidence and trust is high, are more financially …

confidence shock. Lack-of-confidence shocks play a central role in generating jobless recoveries, for fundamental shocks, such as …

firms invest and hire less. The higher uncertainty reduces agents' confidence and further discourages economic activity. We …

). Ambiguity aversion is described by recursive multiple priors preferences that capture agents' lack of confidence in probability … using first-order approximations. In our estimated medium-scale DSGE model, a loss of confidence about productivity works … like 'unrealized' bad news. Time-varying confidence emerges as a major source of business cycle fluctuations …

confidence innovations. Once we control for their low-frequency effect, we find little statistically or economically significant …

frequency variation in technology. News shocks are positively correlated with consumption, stock price, and consumer confidence …