Why does trust vary so substantially across countries? This paper presents a general equilibrium growth model in which … rate of investment. The predictions of the model are examined empirically for a cross-section of countries and have …

and show that low trust environments reduce the rate of investment and thus the economy's growth rate. Further, we show …-trust societies, in turn, exhibit higher rates of investment and growth …Why does trust vary so substantially across countries? How does trust affect growth? This paper presents a general …

played by financial forces in fostering new inventions. Drawing on Schumpeterian growth theory, this paper tests the roles of …Although ideas production plays a critical role for growth, there has been only a modicum of research on the role … framework, on the other hand, curbs innovative production. Schumpeterian growth ; financial development ; venture capital …

Anglo-Saxon countries have been relatively successful over the last two decades in producing employment growth and in …

. Theory translates into an intuitive econometric system that identifies the causal impact of trade on income and growth, and …We build and estimate a structural dynamic general equilibrium model of growth and trade. Trade affects growth through …, growth affects trade, directly through changes in country size and indirectly through altering the incidence of trade costs …