We reexamine the role of trust in macroeconomic performance using a new econometric method, a two-step approach adopted by Di Tella et al. (AER, 2001). In the first step, the measure of trust is constructed from the micro-regression of trust. This method allows us to extract the component of...

We use monthly time series data for Poland and Hungary to assess the impact of differences in the pace of implementation of economic reforms. The selected policy variables are a measure of reforms in both the domestic and external sectors of the economy, and they also indicate the initial level...