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Free to Trust: Economic Freedom and Social Capital Author info | Abstract | Publisher info | Download info | Related research | Statistics Niclas Berggren
Henrik Jordahl
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We present new evidence on how generalized trust is formed. Unlike previous studies, we look at the explanatory power of economic institutions, we use newer data, we incorporate more countries, and we use instrumental variables in an attempt to handle the causality problem. A central result is that legal structure and security of property rights (area 2 of the Economic Freedom Index) increase trust. The idea is that a market economy, building on voluntary transactions and interactions with both friends and strangers within the predictability provided by the rule of law, entails both incentives and mechanisms for trust to emerge between people. Copyright 2006 Blackwell Publishing Ltd..
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Article provided by Blackwell Publishing in its journal Kyklos .
Volume (Year): 59 (2006)
Issue (Month): 2 (05)
Pages: 141-169
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Handle: RePEc:bla:kyklos:v:59:y:2006:i:2:p:141-169Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962
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Paper Berggren, Niclas & Jordahl, Henrik, 2005.
"Free to Trust? Economic Freedom and Social Capital ,"
Ratio Working Papers
64, The Ratio Institute.
[Downloadable!] Berggren, Niclas & Jordahl, Henrik, 2005.
"Free to Trust? Economic Freedom and Social Capital ,"
Working Paper Series
2005:2, Uppsala University, Department of Economics.
[Downloadable!] References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Christian Bjornskov, 2003.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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