![]() ![]() ![]() Relatedly, Dearmon and Grier ( 2011) show at the macro level that trust is important for human and physical capital accumulation. ![]() For example, both Guiso et al ( 2008) and Georgarakos and Pasini ( 2011) find that low levels of trust are negatively associated with stock market participation. However, noneconomic factors also matter for investment decisions. Investment has been found to be influenced by a host of fundamental economic variables such as tax rates (Djankov et al., 2010), tax complexity (Lawless, 2013), exchange rates (Froot & Stein, 1991 Udomkerdmongkol et al., 2009), market potential (Head & Mayer, 2004), and other spatial considerations (Blonigen et al., 2007). Understanding the factors that underlie individual economic decision-making is a question of fundamental importance for firms, governments, and society in general. ![]()
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