TY - JOUR
T1 - The role of social capital in financial development
AU - Guiso, Luigi
AU - Sapienza, Paola
AU - Zingales, Luigi
PY - 2004/6
Y1 - 2004/6
N2 - To identify the effect of social capital on financial development, we exploit social capital differences within Italy. In high-social-capital areas, households are more likely to use checks, invest less in cash and more in stock, have higher access to institutional credit, and make less use of informal credit. The effect of social capital is stronger where legal enforcement is weaker and among less educated people. These results are not driven by omitted environmental variables, since we show that the behavior of movers is still affected by the level of social capital of the province where they were born.
AB - To identify the effect of social capital on financial development, we exploit social capital differences within Italy. In high-social-capital areas, households are more likely to use checks, invest less in cash and more in stock, have higher access to institutional credit, and make less use of informal credit. The effect of social capital is stronger where legal enforcement is weaker and among less educated people. These results are not driven by omitted environmental variables, since we show that the behavior of movers is still affected by the level of social capital of the province where they were born.
UR - http://www.scopus.com/inward/record.url?scp=4043153533&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=4043153533&partnerID=8YFLogxK
U2 - 10.1257/0002828041464498
DO - 10.1257/0002828041464498
M3 - Review article
AN - SCOPUS:4043153533
SN - 0002-8282
VL - 94
SP - 526
EP - 556
JO - American Economic Review
JF - American Economic Review
IS - 3
ER -