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Trust in the government increases financial well-being and general well-being during COVID-19

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  • Barrafrem, Kinga
  • Tinghög, Gustav
  • Västfjäll, Daniel

Abstract

We investigate the antecedents of subjective financial well-being and general well-being during the ongoing COVID-19 pandemic. In an online survey conducted in the midst of COVID-19 pandemic with over 1000 Swedish participants we found that distrust in the government to cope with financial (but not healthcare) challenges of the pandemic was negatively related to the feeling of financial security. In a structural equation model, we also show that trust in government to deal with financial challenges of COVID-19 pandemic has a significant impact on general well-being through the mediating channel of financial well-being. In addition, trust in government to deal with healthcare challenges of COVID-19 pandemic has a significant direct impact on individuals’ general well-being. Our findings have important implications for public policy as they highlight the importance of citizens’ trust in well-functioning governmental institutions to help cope with not only healthcare, but also financial challenges of an ongoing pandemic.

Suggested Citation

  • Barrafrem, Kinga & Tinghög, Gustav & Västfjäll, Daniel, 2021. "Trust in the government increases financial well-being and general well-being during COVID-19," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    • Handle: RePEc:eee:beexfi:v:31:y:2021:i:c:s2214635021000587
    DOI: 10.1016/j.jbef.2021.100514
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    References listed on IDEAS

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    3. Vieira, Kelmara Mendes & Potrich, Ani Caroline Grigion & Bressan, Aureliano Angel & Klein, Leander Luiz, 2021. "Loss of financial well-being in the COVID-19 pandemic: Does job stability make a difference?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    4. Văn, Lê & Bảo, Nguyễn Khắc Quốc, 2022. "The relationship between global stock and precious metals under Covid-19 and happiness perspectives," Resources Policy, Elsevier, vol. 77(C).
    5. Md. Khaled Saifullah & Md. Yousuf Harun & Emadul Islam, 2023. "Trust in Government, Awareness and Attitude, and Influence of Social Media in the Context of Risk Perception During the COVID-19 Pandemic in Bangladesh," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 1249-1263, May.

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    More about this item

    Keywords

    Financial well-being; Well-being; COVID-19; Trust; Risk perception;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G50 - Financial Economics - - Household Finance - - - General

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