{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,6]],"date-time":"2026-07-06T14:29:22Z","timestamp":1783348162595,"version":"3.54.6"},"reference-count":43,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"3","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Management Science"],"published-print":{"date-parts":[[2021,3]]},"abstract":"<jats:p> We propose a macroeconomic model in which variation in the level of trust leads to higher innovation, investment, and productivity growth. The key feature in the model is a hold-up friction in the creation of new capital. Innovators generate ideas but are inefficient at implementing them into productive capital on their own. Firms can help innovators implement their ideas efficiently but cannot ex ante commit to compensating them appropriately. Rather, firms are disciplined only by the value of their reputations\u2014the present value of their future partnerships. We model trust as a public signal and construct a correlated equilibrium. When trust is high, firms anticipate fruitful collaborations and thus can credibly commit to not expropriating inventors, leading to the more efficient production of new capital. Our model can be used to qualitatively replicate the empirical relation between measures of trust and investment, innovation, and productivity growth\u2014at both the micro and macro level. <\/jats:p><jats:p> This paper was accepted by Tomasz Piskorski, finance. <\/jats:p>","DOI":"10.1287\/mnsc.2019.3545","type":"journal-article","created":{"date-parts":[[2020,5,22]],"date-time":"2020-05-22T15:03:19Z","timestamp":1590159799000},"page":"1825-1850","source":"Crossref","is-referenced-by-count":43,"title":["Trust, Collaboration, and Economic Growth"],"prefix":"10.1287","volume":"67","author":[{"ORCID":"https:\/\/2.zoppoz.workers.dev:443\/https\/orcid.org\/0000-0002-0352-7700","authenticated-orcid":false,"given":"Jiro","family":"Kondo","sequence":"first","affiliation":[{"name":"Desautels Faculty of Management, McGill University, Montreal, Quebec H3A 1G5, Canada;"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Danielle","family":"Li","sequence":"additional","affiliation":[{"name":"Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02142;"},{"name":"National Bureau of Economic Research, Cambridge, Massachusetts 02139;"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/2.zoppoz.workers.dev:443\/https\/orcid.org\/0000-0002-4337-5705","authenticated-orcid":false,"given":"Dimitris","family":"Papanikolaou","sequence":"additional","affiliation":[{"name":"National Bureau of Economic Research, Cambridge, Massachusetts 02139;"},{"name":"Department of Finance, Kellogg School of Management, Evanston, Illinois"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"crossref","unstructured":"Acemoglu D, Johnson S, Robinson JA (2005) Institutions as a fundamental cause of long-run growth. Aghion P, Durlauf SN, eds. Handbook of Economic Growth (Elsevier, New York), 385\u2013472.","DOI":"10.1016\/S1574-0684(05)01006-3"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhs121"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1016\/j.euroecorev.2008.10.001"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.1257\/aer.100.5.2060"},{"key":"B5","doi-asserted-by":"crossref","unstructured":"Algan Y, Cahuc P (2013) Trust, growth, and well-being: New evidence and policy implications. Aghion P, Durlauf S, eds. Handbook of Economic Growth. 1st ed., vol. 1 (Elsevier, New York), 49\u2013120.","DOI":"10.1016\/B978-0-444-53538-2.00002-2"},{"issue":"1","key":"B6","first-page":"190","volume":"84","author":"Anton JJ","year":"1994","journal-title":"Amer. Econom. Rev."},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1111\/1467-937X.t01-1-00020"},{"key":"B8","doi-asserted-by":"crossref","unstructured":"Arrow K (1962) Economic welfare and the allocation of resources for invention. The Rate and Direction of Inventive Activity: Economic and Social Factors (National Bureau of Economic Research, Cambridge, MA), 609\u2013626.","DOI":"10.1515\/9781400879762-024"},{"key":"B9","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2012.01785.x"},{"key":"B10","doi-asserted-by":"publisher","DOI":"10.2307\/1911154"},{"key":"B11","volume-title":"The Moral Basis of a Backward Society","author":"Banfield E","year":"1958"},{"key":"B12","doi-asserted-by":"publisher","DOI":"10.1006\/game.1995.1027"},{"key":"B14","volume-title":"The Origin and Evolution of New Businesses","author":"Bhide AV","year":"1999"},{"key":"B16","doi-asserted-by":"publisher","DOI":"10.2307\/1911840"},{"issue":"5","key":"B17","first-page":"893","volume":"87","author":"Carlstrom CT","year":"1997","journal-title":"Amer. Econom. Rev."},{"key":"B20","doi-asserted-by":"publisher","DOI":"10.2307\/2937944"},{"key":"B21","doi-asserted-by":"crossref","unstructured":"Doepke M, Zilibotti F (2014) Culture, entrepreneurship, and growth. Aghion P, Durlauf SN, eds. Handbook of Economic Growth, vol. 2. (Elsevier, New York), 1\u201348.","DOI":"10.1016\/B978-0-444-53538-2.00001-0"},{"key":"B22","doi-asserted-by":"publisher","DOI":"10.1111\/1467-937X.00237"},{"key":"B23","doi-asserted-by":"publisher","DOI":"10.1162\/1542476053295304"},{"key":"B24","volume-title":"Trust: The Social Virtues and the Creation of Prosperity","author":"Fukuyama F","year":"1995"},{"key":"B25","volume-title":"Trust: Making and Breaking Cooperative Relations","author":"Gambetta D","year":"1988"},{"key":"B26","volume-title":"The Venture Capital Cycle.","volume":"1","author":"Gompers P","year":"2006","edition":"2"},{"key":"B27","volume-title":"Prison Notebooks","author":"Gramsci A","year":"1971"},{"issue":"3","key":"B28","first-page":"342","volume":"87","author":"Greenwood J","year":"1997","journal-title":"Amer. Econom. Rev."},{"key":"B29","doi-asserted-by":"publisher","DOI":"10.1257\/jep.20.2.23"},{"key":"B30","doi-asserted-by":"publisher","DOI":"10.1162\/003355399555954"},{"key":"B32","doi-asserted-by":"publisher","DOI":"10.1016\/j.jmoneco.2005.10.021"},{"key":"B33","volume-title":"Corporate Strategies","author":"Jung Y","year":"2019"},{"key":"B34","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2004.00696.x"},{"key":"B35","doi-asserted-by":"publisher","DOI":"10.1016\/0304-3932(88)90030-X"},{"key":"B36","doi-asserted-by":"publisher","DOI":"10.1162\/003355300555475"},{"key":"B37","doi-asserted-by":"publisher","DOI":"10.1086\/704619"},{"key":"B38","doi-asserted-by":"publisher","DOI":"10.1093\/qje\/qjw040"},{"key":"B39","doi-asserted-by":"publisher","DOI":"10.1093\/rof\/rfu051"},{"issue":"2","key":"B40","first-page":"333","volume":"87","author":"La Porta R","year":"1997","journal-title":"Amer. Econom. Rev."},{"key":"B43","doi-asserted-by":"publisher","DOI":"10.1086\/662221"},{"key":"B44","doi-asserted-by":"crossref","unstructured":"Putnam RD, Raffaella LR, Nanetti Y (1994) Making Democracy Work: Civic Traditions in Modern Italy (Princeton University Press, Princeton, NJ).","DOI":"10.1515\/9781400820740"},{"key":"B45","doi-asserted-by":"publisher","DOI":"10.1016\/j.jet.2010.01.004"},{"key":"B46","unstructured":"Solow RM (1960) Investment and technical progress. Arrow KJ, Karlin A, Suppes P, eds. Mathematical Methods in the Social Sciences (Stanford University Press, Stanford, CA), 89\u2013104."},{"key":"B48","doi-asserted-by":"publisher","DOI":"10.1111\/j.1542-4774.2010.tb00537.x"},{"key":"B49","volume-title":"The Protestant Ethic and the Spirit of Capitalism","author":"Weber M","year":"1905"},{"key":"B50","doi-asserted-by":"publisher","DOI":"10.2307\/1912934"},{"issue":"470","key":"B51","first-page":"295","volume":"111","author":"Zak PJ","year":"2001","journal-title":"Econom. J."}],"container-title":["Management Science"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/2.zoppoz.workers.dev:443\/https\/pubsonline.informs.org\/doi\/pdf\/10.1287\/mnsc.2019.3545","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2023,4,2]],"date-time":"2023-04-02T11:18:02Z","timestamp":1680434282000},"score":1,"resource":{"primary":{"URL":"https:\/\/2.zoppoz.workers.dev:443\/https\/pubsonline.informs.org\/doi\/10.1287\/mnsc.2019.3545"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2021,3]]},"references-count":43,"journal-issue":{"issue":"3","published-print":{"date-parts":[[2021,3]]}},"alternative-id":["10.1287\/mnsc.2019.3545"],"URL":"https:\/\/2.zoppoz.workers.dev:443\/https\/doi.org\/10.1287\/mnsc.2019.3545","relation":{},"ISSN":["0025-1909","1526-5501"],"issn-type":[{"value":"0025-1909","type":"print"},{"value":"1526-5501","type":"electronic"}],"subject":[],"published":{"date-parts":[[2021,3]]}}}