The result of the project was a theoretical mechanism explaining poverty traps and multiple equilibria in the economy. In the core of this mechanism, which links social capital and social trust, there is interdependency between income and subjective sense of well-being. Low trust and lack of social capital form a vicious circle, which leads to “trap of low trust”.
The project was realised for CERGE-EI Foundation.
ibs@ibs.org.pl
