As trust undeniably is a crucial factor of economic development, it seems to be veryimportant to find out where there exists a reasonable stock of trust and where not,as well as how the emergence of trust could be fostered, how its existence can bemaintained and how threats to trustful relations...

Following the collapse of the socialist systems the countries of Middle- and Eastern Europefollowed their way to democracy and a market economy with different speed and sequencing.The related political-economy issues gave rise to an ongoing debate on the question as towhether the introduction of...

This paper analyzes optimal foreign aid policy in a neoclassical frameworkwith a conflict of interest between the donor and the recipient government.Aid conditionality is modelled as a limited enforceable contract. We defineconditional aid policy to be self-enforcing if, at any point in time,...