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dc.contributor.authorGUISO, Luigi
dc.contributor.authorSAPIENZA, Paola
dc.contributor.authorZINGALES, Luigi
dc.date.accessioned2011-04-19T12:47:54Z
dc.date.available2011-04-19T12:47:54Z
dc.date.issued2009
dc.identifier.citationQuarterly Journal of Economics, 2009, 124, 3, 1095-1131
dc.identifier.issn0033-5533
dc.identifier.urihttps://hdl.handle.net/1814/16491
dc.description.abstractHow much do cultural biases affect economic exchange? We answer this question by using data on bilateral trust between European countries. We document that this trust is affected not only by the characteristics of the country being trusted, but also by cultural aspects of the match between trusting country and trusted country, such as their history of conflicts and their religious, genetic, and somatic similarities. We then find that lower bilateral trust leads to less trade between two countries, less portfolio investment, and less direct investment, even after controlling for the characteristics of the two countries. This effect is stronger for goods that are more trust intensive. Our results suggest that perceptions rooted in culture are important ( and generally omitted) determinants of economic exchange.
dc.language.isoen
dc.publisherM I T Press
dc.titleCultural Biases in Economic Exchange?
dc.typeArticle
dc.neeo.contributorGUISO|Luigi|aut|EUI70005
dc.neeo.contributorSAPIENZA|Paola|aut|
dc.neeo.contributorZINGALES|Luigi|aut|
dc.identifier.volume124
dc.identifier.startpage1095
dc.identifier.endpage1131
eui.subscribe.skiptrue
dc.identifier.issue3


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