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Trust and preferences: evidence from survey data

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  • Giuseppe Albanese

    ()
    (Bank of Italy)

  • Guido de Blasio

    ()
    (Bank of Italy)

  • Paolo Sestito

    ()
    (Bank of Italy)

Abstract

This paper considers the role of preferences in explaining trust. By using the Bank of ItalyÂ’s Survey on Household Income and Wealth (SHIW), the paper shows that time preferences and risk preferences are key covariates of self-reported trust. They both predict negatively a measure of generalized trust; however, risk aversion is positively correlated with an index of particularized trusting behaviour (which refers to family and friends). Moreover, the results are robust to using a different data source to gauge the role of social preferences and personality traits. The study highlights that neglecting preferences when analysing the role of trust in explaining socio-economic outcomes might pose serious challenges in terms of omitted variables.

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Bibliographic Info

Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 911.

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Date of creation: Apr 2013
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Handle: RePEc:bdi:wptemi:td_911_13

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Keywords: trust; preferences; survey data;

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References

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Citations

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Cited by:
  1. Giuseppe Albanese & Guido de Blasio & Paolo Sestito, 2014. "My parents taught me. Evidence on the family transmission of values," Temi di discussione (Economic working papers) 955, Bank of Italy, Economic Research and International Relations Area.
  2. Marco Paccagnella & Paolo Sestito, 2014. "School cheating and social capital," Temi di discussione (Economic working papers) 952, Bank of Italy, Economic Research and International Relations Area.
  3. Guido de Blasio & Diego Scalise & Paolo Sestito, 2014. "Universalism vs. particularism: a round trip from sociology to economics," Questioni di Economia e Finanza (Occasional Papers) 212, Bank of Italy, Economic Research and International Relations Area.

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