Governments perform better where there is more general trust and strong civic norms; they perform less well where citizens are less trusting and less civic-minded. Social capital - in the form of general trust and strong civic norms that call for cooperation when large-scale collective action is...

Social capital - in the form of general trust and strong civil norms that call for cooperation when large-scale collective action is needed - can improve government performance in three ways: 1) It can broaden government accountability, making government responsive to citizens at large, rather...

This paper presents evidence that "social capital" matters for measurable economic performance, using indicators of trust and civic norms from the World Values Surveys for a sample of 29 market economies. Memberships in formal groups--Putnam's measure of social capital--is not associated with...

Why does trust vary so substantially across countries? This paper presents a general equilibrium growth model in which heterogeneous agents transact and face a moral hazard problem. Agents may trust those with whom they transact, but they also have the opportunity to invest resources in...

Why does trust vary so substantially across countries? How does trust affect growth? This paper presents a general equilibrium growth model in which heterogeneous agents transact and face a moral hazard problem. Agents in this world may trust those with whom they transact, but they also have the...