Algan, Yann; Cahuc, Pierre; Shleifer, Andrei; Aghion, … - National Bureau of Economic Research (NBER) - 2009
In a cross-section of countries, government regulation is strongly negatively correlated with social capital. We document this correlation, and present a model explaining it. In the model, distrust creates public demand for regulation, while regulation in turn discourages social capital...