The Right Amount of Trust
---- Acknowledgements ----
We thank Yann Algan, Oriana Bandiera, Sascha Becker, Larry Blume, Francesco Caselli, Bhajan Grewal, Erzo Luttmer, Bo Rothstein, Bernard Salanié, Guido Tabellini, Romain Wacziarg and Georg Weizsäcker, as well as participants at various conferences and seminars. We are grateful to the International Atlantic Economic Society for inviting Luigi Guiso to deliver the Robert A. Mundell distinguished address at the 67th meeting. Luigi Guiso and Paola Giuliano thank the EUI and the UCLA-CIBER grant, respectively, for financial support. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.