This paper reports a negative relationship between the size of the shadow economy and generalized trust, in a sample of … endogeneity. It is independent from trust in institutions and from income inequality, and is mainly present in the sample of … developing countries. Those findings suggest that the tax compliance effect of trust dominates its role as a substitute for the …

This paper studies the relationship between trust and foreign direct investment (FDI) in a crosssection of countries …. Accounting for the issue endogeneity, this paper suggests that countries with a higher level of generalized trust attract more … FDI than the low-trust countries. …

We examine the influence of guilt and trust on the performance of credence goods markets. An expert can make a promise … to a consumer first, whereupon the consumer can express her trust by paying an interaction price before the expert …

In this article a simple game is used to develop a concept of trust that takes account of boundedly rational behavior … there remains a risk that the second mover does not perform as promised. Trust consists of accepting this risk. The paper … also discusses the efficiency of trust and the role of the law in separating trustworthy from non trustworthy people. …