Article 16 of the EBA Founding Regulation enables the EBA to issue guidelines and recommendations, while Articles 8 (1) (aa) and (ab) and 29 (2) of that Regulation enable it to develop a handbook for supervision and resolution. The European Court of Justice (ECJ or Court, hereinafter), in its...

We combined a natural experiment (the occurrence of the COVID-19 pandemic in 2020) with the tools of laboratory experiments to study whether and how an unprecedented shock on social interactions (the introduction and abrogation of a nationwide lockdown) affected the evolution of individuals'...

This paper examines how the interaction of social trust and institutions, such as land administration, affects household economic decisions in Viet Nam. Using a panel dataset of rural households from 2008 to 2014, we show that negative consequences of the duration of land administration on...

This paper analyses the connection between legal origins and generalized trust. Based on recent results of institutions and trust research it argues that legal origins and trust are connected via the beliefs of agents. Next, it develops hypotheses about a complex and self-reinforcing causal...

To investigate the relation between trust and formal institutions, we analyze bilateral trade patterns in a sample of 16 European countries between 1996-2009. Trust in trading partners has a significant positive effect on bilateral trade. However, our results suggest that trust and formal...

The aim of this paper is threefold: we first discuss the appropriateness of the traditional trust-game-tree for the analysis of trust relationships. Following the definition put forward by Lee et al. (2005) that "confident expectations and a willingness to be vulnerable are critical components...

Transaction costs are a major reason why international trade flows are much smaller than traditional trade theory would 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...

Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004: This paper revisits the economic analysis of contract law for a setting of cooperative investments. While Che and Chung (1999) have shown that expectation damages perform rather poorly, the present paper argues that this...