VoxEU Video
Trust, social capital and finance in Italy
Trust is a key concept in many of Paola Sapienza’s papers, which the economist links back to a person’s cultural background. She points out that there are economic decisions for which the ability to trust others matters more. For example, while trust is fundamental to all trade and investment, Sapienza finds that trust is particularly important in financial markets. In financial markets, people need to be willing to part with their money in exchange for the promise of more money later.
