Using a large cross-section of international household-level data, we explore the relation between institutional quality, households' level of trust and stock-market participation. We find that institutional quality has a significant impact on both trust and stock-market participation. We also...

We propose a bivariate component GARCH-MIDAS model to estimate the long- and short-run components of the variances and covariances. The advantage of our model to the existing DCC-based models is that it uses the same form for both the variances and covariances and that it estimates these moments...