the role of social trust. This is in turn defined as the confidence people have that strangers, i.e. fellow citizens on … substantial literature has found that social trust is associated with a set of different macroeconomic outcomes: economic growth …-being are all influenced by the propensity of people within any nation to trust each other. The questions are therefore where …

High levels of social trust has been linked to both public sector size and long term economic growth, thereby helping … examines if social trust as a background factor also insulates countries against negative effects of public sector size on … insulating effects. Instead we find robust evidence that high trust aggravates the crowding out effects of public sector size on …

-country differences in informal institutions, measured by social trust. We note a number of theoretical mechanisms that could imply that … similar objective problems are more likely to be effectively dealt with in higher-trust societies. A set of panel estimates … and growth problems in low-trust countries. This finding sheds light on the differential market reactions to economic …