Well-functioning institutions, both formal (i.e. rule of law) and informal (i.e. trust), facilitate economic exchange. To investigate the nature of the relationship between formal and informal institutions, we analyze bilateral trade patterns in a sample of 16 European countries between...

We reestimate <link rid="b22">McClelland's (1961)</link> thesis on entrepreneurial culture and economic development. McClelland found a strong positive correlation between measures of need for achievement ("N" achievement) imagery in school textbooks and the subsequent rate of economic growth. Benchmarking our...