Can a major shock in childhood permanently shape trust? We consider a hunger episode in Germany after WWII and … regional and temporal variation. We correlate hunger exposure with measures of trust using data from a nationally … significantly lower levels of trust as adults. This finding highlights that early-life experiences can have long-term effects in …

Can a major shock in childhood permanently shape trust? We consider a hunger episode in Germany after WWII and … regional and temporal variation. We correlate hunger exposure with measures of trust using data from a nationally … significantly lower levels of trust as adults. This finding highlights that early-life experiences can have long-term effects in …

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 …

We present new evidence on the influence of income inequality on generalized trust. Using individual panel data from … differences among people in the bottom half of the income distribution, are associated with lower trust. The relationship between … income inequality and trust is particularly strong for people with a strong aversion against income differentials. We also …

We conduct an extensive robustness analysis of the relationship between trust and growth for a later time period (the … results. We find that the trust-growth relationship is less robust with respect to empirical specification and to countries in … the sample than previously claimed, and that outliers affect the results. Nevertheless trust seems quite important …

We present new evidence on how generalized trust is formed. Unlike previous studies, we look at the explanatory power … Freedom Index) increase trust. The idea is that a market economy, building on voluntary transactions and interactions with … for trust to emerge between people. …

We examine the effect of generalized trust on long-term economic growth. Unlike in previous studies, we use Bayesian … endogeneity and assess whether the effect of trust on growth is causal. Examining more than forty regressors for nearly fifty … countries, we show that trust exerts a positive effect on long-term growth and, based on the posterior inclusion probabilities …

suggest. Trust between trading partners lowers transaction costs and may therefore enhance trade. The empirical analysis of … this paper shows that more trust leads to more trade so that part of the mystery of missing trade can be attributed to the … lack of trust between trading partners, e.g. because of cultural differences and habits, or because of insufficient …

for employees to work in co-ethnic firms. It argues that strong social networks and related high intra-group trust …

This paper examines the effect of exposure to a culture of easier divorce as a minor on generalized trust using the … unilateral divorce reforms across the US. According to the results, the divorce revolution seems to have had some effect on trust … effects for women with an additional year of exposure being associated with a 4 percentage point lower generalized trust in …