We analyse new experimental and survey data from rural Cameroon, where the level of trust is much higher than is typical of Africa. We find the level of trust exhibited by individuals to be highly correlated with membership of Rotating Saving and Credit Associations. There is also a significant...

In less developed countries, there is often a low correlation between survey-based measures of interpersonal trust and experimental measures. This has caused doubt about the reliability of trust measures used to explain variations in levels of socio-economic development. Using data from rural...

This paper takes a close look at the 'behavioural finance' explanations of the equity premium puzzle, namely myopic loss aversion (Benartzi and Thaler, 1995) and disappointment aversion (Ang, Bekaert and Liu, 2000). The paper proposes a simple specification of loss and disappointment aversion...

Uses recently developed techniques in the estimation of non‐stationary time series to construct money demand functions for four African economies, using quarterly data. Finds that money demand depends not only on income, inflation and interest rates, but also on variability of inflation and...

Presents a conceptual framework for measuring the impact of uncertainty on investment decisions in a developing country; this framework is applied to post‐war investment in mining and manufacturing in South Africa.