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Social capital is often associated with desirable political and economic outcomes. This paper contributes to a growing literature on its "dark side". We examine the role of social capital in the downfall of democracy in interwar Germany. We analyze Nazi Party entry in a cross-section of cities,...
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Emerging literature shows that spatial differences in entrepreneurship tend to persist over longer periods of time. A potential mechanism underlying this pronounced persistence is that high levels of start-up activity lead to the emergence of a regional culture and a supporting environment in...
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Do legal institutions affect norms of cooperation? Using the introduction of the Code Napoleon during the Napoleonic … Wars in Germany as a historical experiment, I show that a positive shock to the quality of legal institutions can increase … levels of interpersonal trust in the data of the German Socio-Economic Panel (SOEP). This result holds true conditional on …
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