Trust and Growth
Abstract
Using data from US states, we find a positive relationship between trust and growth. According to our results, a 10 percentage point increase in trust increases the growth rate of per capita income by 0.5 percentage point, growth rate of housing prices by 1.25 percentage points, and the growth rate of employment by 2.5 percentage points over a decade.Download Info
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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2007.73.Length:
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:fem:femwpa:2007.73
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Related research
Keywords: Trust; Economic Growth;Other versions of this item:
- Oguzhan Dincer & Eric Uslaner, 2010. "Trust and growth," Public Choice, Springer, vol. 142(1), pages 59-67, January.
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-08 (All new papers)
- NEP-SOC-2007-08-08 (Social Norms & Social Capital)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Fabio Sabatini, 2009.
"Does Social Capital Create Trust? Evidence from a Community of Entrepreneurs,"
Working Papers
2009.44, Fondazione Eni Enrico Mattei.
- Fabio Sabatini, 2009. "Does social capital create trust? Evidence from a community of entrepreneurs," Department of Economics University of Siena 552, Department of Economics, University of Siena.
- Sabatini, Fabio, 2009. "Does social capital create trust? Evidence from a community of entrepreneurs," AICCON Working Papers 58-2009, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
- Marc Sangnier, 2009. "Does trust favor macroeconomic stability?," Working Papers halshs-00575021, HAL.
- Marc Sangnier, 2011. "The co-evolution of social capital and financial development," Working Papers halshs-00585008, HAL.
- Wahl, Fabian, 2012. "Why it matters what people think: Beliefs, legal origins and the deep roots of trust," FZID Discussion Papers 52-2012, University of Hohenheim, Center for Research on Innovation and Services (FZID).
- Bohdan Kukharskyy & Michael Pflüger, 2011. "Relational Contracts and the Economic Well-Being of Nations," Working Papers 095, Bavarian Graduate Program in Economics (BGPE).
- Berggren, Niclas & Elinder, Mikael, 2010.
"Is Tolerance Good or Bad for Growth?,"
Working Paper Series
846, Research Institute of Industrial Economics.
- Niclas Berggren & Mikael Elinder, 2012. "Is tolerance good or bad for growth?," Public Choice, Springer, vol. 150(1), pages 283-308, January.
- Berggren, Niclas & Elinder, Mikael, 2010. "Is tolerance good or bad for growth?," Working Paper Series, Center for Fiscal Studies 2010:8, Uppsala University, Department of Economics.
- Berggren, Niclas & Elinder, Mikael, 2010. "Is tolerance good or bad for growth?," Working Paper Series 2010:13, Uppsala University, Department of Economics.
- Berggren, Niclas & Elinder, Mikael, 2010. "Is Tolerance Good or Bad for Growth?," Ratio Working Papers 155, The Ratio Institute.
- Yamamura, Eiji, 2012. "Atomic bombs and the long-run effect on trust: Experiences in Hiroshima and Nagasaki," MPRA Paper 36805, University Library of Munich, Germany.
- Marc Sangnier, 2011.
"The co-evolution of social capital and financial development,"
PSE Working Papers
halshs-00585008, HAL.
- Marc Sangnier, 2011. "The co-evolution of social capital and financial development," Economics Bulletin, AccessEcon, vol. 31(2), pages 1063-1081.
- Kiridaran Kanagaretnam & Stuart Mestelman & Khalid Nainar & Mohamed Shehata, 2009.
"The Impact of Social Value Orientation and Risk Attitudes on Trust and Reciprocity,"
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2008-06, McMaster University.
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- Ulrich Thiessen, 2010.
"The Shadow Economy in International Comparison: Options for Economic Policy Derived from an OECD Panel Analysis,"
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- Marc Sangnier, 2012.
"Does Trust Favor Macroeconomic Stability?,"
AMSE Working Papers
1227, Aix-Marseille School of Economics, Marseille, France.
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- Bergh, Andreas & Henrekson, Magnus, 2011.
"Government Size and Growth: A Survey and Interpretation of the Evidence,"
Working Paper Series
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- Andreas Bergh & Magnus Henrekson, 2011. "Government Size And Growth: A Survey And Interpretation Of The Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 872-897, December.
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