DOES SOCIAL TRUST INCREASE INDIVIDUAL HAPPINESS IN JAPAN?*

Economists are mainly interested in trust as being growth enhancing, but whether trust is well‐being enhancing is underexplored. This paper examines if trust is intrinsically valuable by using individual happiness data from Japan. I attempt to mitigate the problem of non‐random selection of residents by restricting the sample to non‐movers. I also address reverse causality by instrumenting trust with residential stability, as trust should be higher for a more stable community. I find that trust has positive and significant effects on individual happiness. The instrumental variables approach suggests that social trust has a causal effect on individual happiness.     

TRADITIONAL AND MODERN INDUSTRIES IN INDIA

In this article, the author attempts to clarify the actual condition of traditional industries and the main trends in their changes, giving a definition of their relation with modern industry. First, the author presents a definition of traditional industry, then shows statistically that small-scale industry is mainly composed of traditional industries. Second, the author investigates the existing forms of small-scale industries in terms of groups and areas, using the results of the National Sample Surveys. The detrimental factors impeding the growth and transformation of traditional industries into modern small-scale industries are also examined. Third, the author tries to clarify the reasons why the traditional industries have strongly competitive powers vis-à-vis modern industry and why they have continued to exist.