@article {19512,
	title = {Regulation and Distrust},
	journal = {Quarterly Journal of Economics},
	volume = {125},
	number = {3},
	year = {2010},
	pages = {1015-1049},
	abstract = {We document that, in a cross section of countries, government regulation is strongly negatively correlated with measures of trust. In a simple model ex- plaining this correlation, distrust creates public demand for regulation, whereas regulation in turn discourages formation of trust, leading to multiple equilibria. A key implication of the model is that individuals in low-trust countries want more government intervention even though they know the government is corrupt. We test this and other implications of the model using country- and individual-level data on trust and beliefs about the role of government, as well as on changes in beliefs during the transition from socialism.},
	author = {Philippe Aghion and Yann Algan and Pierre Cahuc and Andrei Shleifer}
}
