The authors explore the relationship between transaction costs and generalized trust. Using panel data from 2,100 households in 135 rural communities of the Philippines, the paper shows that where transaction costs are reduced (proxied by road construction), there is an increase in generalized trust. Consistent with the argument that generalized trust is built through repeated interactions, the authors find that the individuals most likely to engage...
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INFORMATION
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2008/09/01
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Document de travail de recherche sur les politiques
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WPS4706
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1
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1
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2010/07/01
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Disclosed
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A road to trust
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econometric analysis of cross section
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