We extend prior literature by showing that societal trust is a significant determinant of corporate investment policy …. Firms in countries with a higher level of societal trust are less prone to underinvestment. We posit that the association … between trust and underinvestment relates to a reduction of financial constraints. However, when we split our sample using …

diverse individuals lived far apart, have higher-quality government, higher incomes and higher levels of trust. …

, we find that both inflation and unemployment have a negative link with confidence in financial institutions. While … inflation is generally unassociated with confidence in government and leadership approval, unemployment still has a strong … for confidence in political and financial institutions, the associations we document are more substantial for the cohorts …

paper, Knack and Keefer (1997) assess the effect of trust on growth. This paper analyses the robustness of their results … the relationship between trust and growth in terms of both the size and the significance of the estimated effect, is … highly dependent on the set of conditioning variables. An answer to the question whether there is an economic payoff of trust …