How much do cultural biases affect economic exchange? We try to answer this question by using the relative trust European citizens have for citizens of other countries. First, we document that this trust is affected not only by objective characteristics of the country being trusted, but also by...

To identify the effect of social capital on financial development, we exploit social capital differences within Italy. In high-social-capital areas, households are more likely to use checks, invest less in cash and more in stock, have higher access to institutional credit, and make less use of...

We find that institutional ownership in publicly traded companies is associated with more innovation (measured by cite-weighted patents). To explore the mechanism through which this link arises, we build a model that nests the lazy-manager hypothesis with career-concerns, where institutional...

We conduct a survey of economists and a representative sample of Americans to infer the reduction in the perceived value of a paper when its authors have conflicts of interest (CoI), i.e., they have financial, professional, or ideological stakes in the outcome of the results. On average, a CoI...

We conduct a survey of economists and a representative sample of Americans to infer the reduction in the perceived value of a paper when its authors have conflicts of interest (CoI), i.e., they have financial, professional, or ideological stakes in the outcome of the results. On average, a CoI...