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the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial …We document that trust in public institutions--and particularly trust in banks, business and government--has declined … over recent years. U.S. time series evidence suggests that this partly reflects the pro-cyclical nature of trust in …
Persistent link: https://www.econbiz.de/10008925712
Several papers study the effect of trust by using the answer to the World Values Survey (WVS) question “Generally … the level of trust. Glaeser et al. (2000) question the validity of this measure by showing that it is not correlated with … senders’ behaviour in the standard trust game, but only with his trustworthiness. By using a large sample of German households …
Persistent link: https://www.econbiz.de/10005504794
We provide a new explanation to the limited stock market participation puzzle. In deciding whether to buy stocks, investors factor in the risk of being cheated. The perception of this risk is a function not only of the objective characteristics of the stock, but also of the subjective...
Persistent link: https://www.econbiz.de/10005497869
Both individual experiences and community characteristics influence how much people trust each other. Using individual … level data drawn from US localities we find that the strongest factors associated with low trust are: i) a recent history of … not significantly affect trust. The role of racial cleavages leading to low trust is confirmed when we explicitly account …
Persistent link: https://www.econbiz.de/10005498055
This paper documents a strong positive relationship between individual reported trust levels (obtained from the US … firms). This correlation is robust to the inclusion of all of the previously studied determinants of individual trust, e … competitiveness makes respondents approximately five percent more likely to answer the canonical trust question with a "usually trust …
Persistent link: https://www.econbiz.de/10004973968
We study the interplay between competition and trust as efficiency-enhancing mechanims in the private provision of … money. With commitment, trust is automatically achieved and competition ensures efficiency. Without commitment, competition … plays no role. Trust does play a role but requires a lower bound on efficiency. Stationary inflation must be positive and …
Persistent link: https://www.econbiz.de/10004976784
receivable relative to low-CSR firms. This evidence is consistent with the view that the trust between the firm and its … stakeholders and investors, built through investments in social capital, pays off when the overall level of trust in corporations …
Persistent link: https://www.econbiz.de/10011165644
. Using individual and county-level data, we document large causal effects on trust and ethnic identity of an exogenous …-ethnic dimensions. We find that more intense fighting decreases generalized trust and increases ethnic identity. The effects are …
Persistent link: https://www.econbiz.de/10011083530
This note critically assesses the Basel reform process of capital regulation. It highlights the political nature of this process and argues that the absence of clearly spelled-out societal objectives has been detrimental in furthering stability and soundness of the banking systems in the run-up...
Persistent link: https://www.econbiz.de/10011083581
levels of trust, a stronger sense of ethnic identity and a weaker sense of national identity. …
Persistent link: https://www.econbiz.de/10011083742