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 …

transmission tends to be biased toward excessively conservative priors. As a result, societies can be trapped in a low-trust … equilibrium. In this context, a temporary shock to the return to trusting can have a permanent effect on the level of trust. We …

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 …

We argue that social capital as proxied by regional trust and the Rule of Law can improve aggregate productivity …. Trust and the Rule of Law appear to facilitate delegation by improving co-operation, even when we examine "bilateral trust …" between the country of origin and location for affiliates of multinational firms. We show that areas with higher trust and …

anonymous, such markets perform poorly: sellers are not trustworthy, and buyers do not trust sellers. If sellers are …, we find that competition, coupled with some minimal information, eliminates the trust problem almost completely. …