Trust and Growth in the 1990s: A Robustness Analysis
AbstractWe conduct an extensive robustness analysis of the relationship between trust and growth for a later time period (the 1990s) and with a bigger sample (63 countries) than previous studies. In addition to robustness tests that focus on model uncertainty, we use Least Trimmed Squares, a robust estimation technique, to identify outliers and investigate how they affect the results. We find that the trust-growth relationship is less robust with respect to empirical specification and to countries in the sample than previously claimed, and that outliers affect the results. Nevertheless trust seems quite important compared with many other growth-regression variables.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 60.
Length: 30 pages
Date of creation: 03 Jan 2005
Date of revision:
Publication status: Published in Empirical Economics, 2008, pages 251-274.
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More information through EDIRC
trust; growth; robustness analysis; extreme bounds analysis; social capital; least trimmed squares; outliers;
Other versions of this item:
- Bengtsson, Mikael & Berggren, Niclas & Jordahl, Henrik, 2005. "Trust and Growth in the 1990s - A Robustness Analysis," Working Paper Series 2005:1, Uppsala University, Department of Economics.
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-01-09 (All new papers)
- NEP-CBE-2005-01-09 (Cognitive & Behavioural Economics)
- NEP-DEV-2005-01-09 (Development)
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