Trust and Growth
14 Pages Posted: 19 Jul 2007
Date Written: July 2007
Using data from US states, we find a positive relationship between trust and growth. According to our results, a 10 percentage point increase in trust increases the growth rate of per capita income by 0.5 percentage point, growth rate of housing prices by 1.25 percentage points, and the growth rate of employment by 2.5 percentage points over a decade.
Keywords: Trust, Economic Growth
JEL Classification: Z13, R11
Suggested Citation: Suggested Citation