Berggren, Niclas; Jordahl, Henrik - Nationalekonomiska Institutionen, Uppsala Universitet - 2005
We present new evidence on how generalized trust is formed. Unlike previous studies, we look at the explanatory power … of economic institutions, we use newer data, we incorporate more countries, and we use instrumental variables to handle … Freedom Index) increase trust. The idea is that a market economy, building on voluntary transactions and interactions with …