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Social Capital as Good Culture / Luigi Guiso, Paola Sapienza, Luigi Zingales.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Guiso, Luigi.
Contributor:
National Bureau of Economic Research.
Sapienza, Paola.
Zingales, Luigi.
Series:
Working Paper Series (National Bureau of Economic Research) no. w13712.
NBER working paper series no. w13712
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2007.
Summary:
To explain the extremely long-term persistence (more than 500 years) of positive historical experiences of cooperation (Putnam 1993), we model the intergenerational transmission of priors about the trustworthiness of others. We show that this transmission tends to be biased toward excessively conservative priors. As a result, societies can be trapped in a low-trust equilibrium. In this context, a temporary shock to the return to trusting can have a permanent effect on the level of trust. We validate the model by testing its predictions on the World Values Survey data and the German Socio Economic Panel. We also present some anecdotal evidence that differences in priors across regions are reflected in the spirit of the novels that originate from those regions.
Notes:
Print version record
December 2007.

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