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Individual trust: does quality of local institutions matter?

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  • Camussi, Silvia
  • Mancini, Anna Laura

Abstract

This paper contributes to the literature on the determinants of trust by investigating how the quality of local services influences individuals’ generalized trust and trust in local governments. Using data from Italian national statistical office (Istat) Aspects of Daily Life survey, after building a new measure for the quality of local services, we study its effect on individuals’ trust using linear regressions techniques. Our findings suggest that good local public services have a positive impact on individuals’ trust, the effect being stronger for trust in local institutions. Our results are robust to potential endogeneity issues, tested using a two-step GMM estimation procedure, and to potential omitted variables bias, according to the method proposed by Altonji et al. (2005).

Suggested Citation

  • Camussi, Silvia & Mancini, Anna Laura, 2019. "Individual trust: does quality of local institutions matter?," Journal of Institutional Economics, Cambridge University Press, vol. 15(3), pages 487-503, June.
    • Handle: RePEc:cup:jinsec:v:15:y:2019:i:03:p:487-503_00
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    Cited by:

    1. Katarzyna Bentkowska, 2021. "Formal and Informal Institutions’ Changes in the Sharing Economy Development," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 362-375.

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