Public trust, the law, and financial investment
Publication
, Journal Article
Carlin, BI; Dorobantu, F; Viswanathan, S
Published in: Journal of Financial Economics
June 1, 2009
How does trust evolve in markets? What is the optimal level of regulation and how does this affect trust formation and economic growth? In a theoretical model, we analyze these questions, given the value of social capital and the potential for growth in the market. When social capital is valuable, regulation and trustfulness are substitutes. In this case, regulation may cause lower aggregate investment and decreased economic growth. When the social capital is less valuable, regulation and trustfulness may be complements. In the paper, we analyze the optimal level of regulation and highlight the novel predictions of the model. © 2009 Elsevier B.V. All rights reserved.
Duke Scholars
Published In
Journal of Financial Economics
DOI
ISSN
0304-405X
Publication Date
June 1, 2009
Volume
92
Issue
3
Start / End Page
321 / 341
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1606 Political Science
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
Citation
APA
Chicago
ICMJE
MLA
NLM
Carlin, B. I., Dorobantu, F., & Viswanathan, S. (2009). Public trust, the law, and financial investment. Journal of Financial Economics, 92(3), 321–341. https://doi.org/10.1016/j.jfineco.2008.07.001
Carlin, B. I., F. Dorobantu, and S. Viswanathan. “Public trust, the law, and financial investment.” Journal of Financial Economics 92, no. 3 (June 1, 2009): 321–41. https://doi.org/10.1016/j.jfineco.2008.07.001.
Carlin BI, Dorobantu F, Viswanathan S. Public trust, the law, and financial investment. Journal of Financial Economics. 2009 Jun 1;92(3):321–41.
Carlin, B. I., et al. “Public trust, the law, and financial investment.” Journal of Financial Economics, vol. 92, no. 3, June 2009, pp. 321–41. Scopus, doi:10.1016/j.jfineco.2008.07.001.
Carlin BI, Dorobantu F, Viswanathan S. Public trust, the law, and financial investment. Journal of Financial Economics. 2009 Jun 1;92(3):321–341.
Published In
Journal of Financial Economics
DOI
ISSN
0304-405X
Publication Date
June 1, 2009
Volume
92
Issue
3
Start / End Page
321 / 341
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1606 Political Science
- 1502 Banking, Finance and Investment
- 1402 Applied Economics