Trust between parties should drive the negotiation and design of contract: if parties did not trust each others' reaction to unplanned events, they might agree to pay higher costs of negotiation to complete contracts. Using a unique sample of U.S. principal-agent consulting contracts and a...

Trust between parties should drive the negotiation and design of contract: if parties did not trust each others' reaction to unplanned events, they might agree to pay higher costs of negotiation to complete contracts. Using a unique sample of U.S. principal-agent consulting contracts and a...

What role do community norms play in the diffusion and persistence of new organizational practices? We explore this question through an examination of the widespread practice of wage arrears, the late and non-payment of wages, in Russia during the 1990s. Existing research on wage arrears most...

By constructing a unique international database on generalized trust covering 142 countries worldwide for the 41 years from 1980 to 2020, this paper finds a pronounced intertemporal variation of generalized trust over time in a majority of countries across the globe. 3 When analyzing the time...

We conduct an extensive robustness analysis of the relationship between trust and growth by investigating a later time period and a bigger sample than in previous studies. In addition to robustness tests that focus on model uncertainty, we systematize the investigation of outlier influence on...

The paper extends Breggren et al. (2008, EE) on 'trust and growth: a shaky relationship' by incorporating recent developments in the trust-growth literature and using a robust methodological underpinning that accounts for the presence of outliers. The empirical evidence is based on 63 countries....

This study uses insights from the management literature to explain why countries with high levels of interpersonal trust have higher levels of economic development. The concept of absorptive capacity is used to show that the relationship between a country's technological capabilities and level...

Are firms more resilient to systemic banking crises in economies with higher levels of social trust? Using firm-level data in 34 countries from 1990 through 2011, we find that liquidity-dependent firms in high-trust countries obtain more trade credit and suffer smaller drops in profits and...

This paper examines the effect of parental divorce during childhood on generalized trust later on in life using Australian HILDA panel data. The dependent variable is composed of answers to the statement: “Generally speaking, most people can be trusted.” The main explanatory variables...