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Citizens’ trust in government and their willingness-to-pay

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  • Oh, Hyungna
  • Hong, Jong Ho
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    Abstract

    We employ the Hicksian compensating variation and a citizen’s subjective perspective on trustworthiness of government, and draw a positive association between citizens’ trust in government and their willingness-to-pay. Our finding suggests that public projects can be hindered by prevailing distrust toward government.

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    Bibliographic Info

    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 115 (2012)
    Issue (Month): 3 ()
    Pages: 345-347

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    Handle: RePEc:eee:ecolet:v:115:y:2012:i:3:p:345-347

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    Web page: http://www.elsevier.com/locate/ecolet

    Related research

    Keywords: Trust; Credibility; Willingness-to-pay;

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    References

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    1. Dawid, Herbert & Deissenberg, Christophe, 2005. "On the efficiency-effects of private (dis-)trust in the government," Journal of Economic Behavior & Organization, Elsevier, vol. 57(4), pages 530-550, August.
    2. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
    3. Huffman, Wallace & Rousu, M. & Shogren, Jason F. & Tegene, Abebayehu, 2003. "The Public Good Value of Information from Agribusiness on Genetically Modified Foods," Staff General Research Papers 12257, Iowa State University, Department of Economics.
    4. Wiser, Ryan H., 2007. "Using contingent valuation to explore willingness to pay for renewable energy: A comparison of collective and voluntary payment vehicles," Ecological Economics, Elsevier, vol. 62(3-4), pages 419-432, May.
    5. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
    6. Phelan, Christopher, 2006. "Public trust and government betrayal," Journal of Economic Theory, Elsevier, vol. 130(1), pages 27-43, September.
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    Cited by:
    1. Eiji Yamamura, 2014. "Trust in government and its effect on preferences for income redistribution and perceived tax burden," Economics of Governance, Springer, vol. 15(1), pages 71-100, February.
    2. Yamamura, Eiji, 2014. "Time preference and perceptions about government spending and tax: Smokers’ dependence on government support," MPRA Paper 55659, University Library of Munich, Germany.
    3. Pickhardt, Michael & Prinz, Aloys, 2014. "Behavioral dynamics of tax evasion – A survey," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 1-19.

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