Moreover, mutual trust among people is indispensable for markets to function properly (Seabright [2010]), and further, individuals become capable of supporting themselves through market participation (Matsui [2018]).
Let me first express in more detail what we can learn about the reaction functions of households from micro data. Household survey data link information on income, assets, debt  2  BIS Review 141/2010  and consumption at the household level. To understand consumption and saving behaviour of households, it is crucial to combine these various elements in the analysis.