Social Capital and Loan Cost: The Role of Interpersonal Trust
| Autor: | Leonardo Becchetti, Stefano Manfredonia, Fabio Pisani |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: |
Environmental effects of industries and plants
Renewable Energy Sustainability and the Environment Geography Planning and Development interpersonal trust all-in spread TJ807-830 Management Monitoring Policy and Law social dilemmas TD194-195 Renewable energy sources trust games Environmental sciences GE1-350 |
| Zdroj: | Sustainability; Volume 14; Issue 3; Pages: 1238 Sustainability, Vol 14, Iss 1238, p 1238 (2022) |
| ISSN: | 2071-1050 |
| DOI: | 10.3390/su14031238 |
| Popis: | We argue that social dilemmas structured as investment trust games are a dominant feature in social and economic life due to asymmetric information, incomplete contracts and non-overlapping competencies that are typical characteristics of business relationships. We therefore consider that borrowers living in geographical areas with higher interpersonal trust are more likely to overcome the coordination failures typical of this kind of social dilemmas, thereby creating higher economic value and reducing the risk of their economic activity. Our empirical findings support this hypothesis, showing that lenders charge significantly lower loan costs on borrowers living in areas characterized by higher interpersonal trust. |
| Databáze: | OpenAIRE |
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