Data Management

A Different Look At Lenin's Legacy: Trust, Risk, Fairness And Cooperativeness In The Two Germanies

Date Added: Sep 2010
Format: PDF

What are the long-term effects of Communism on economically relevant notions such as social trust? To answer this question, the authors use the reunification of Germany as a natural experiment and study the post-reunification trajectory of convergence with regard to individuals' trust and risk, as well as perceived fairness and cooperativeness. Their hypotheses are derived from a model of German reunification that incorporates individual responses both to incentives and to values inherited from earlier generations as recently suggested in the literature.