Trust in Public Institutions over the Business Cycle
AbstractWe document that trust in public institutions – and particularly trust in banks, business and government – has declined over recent years. U.S. time series evidence suggests that this partly reflects the pro-cyclical nature of trust in institutions. Cross-country comparisons reveal a clear legacy of the Great Recession, and those countries whose unemployment grew the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial sector. Finally, analysis of several repeated cross-sections of confidence within U.S. states yields similar qualitative patterns, but much smaller magnitudes in response to state-specific shocks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5570.
Length: 13 pages
Date of creation: Mar 2011
Date of revision:
Publication status: published in: American Economic Review, 2011, 101 (3), 281-287
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Betsey Stevenson & Justin Wolfers, 2011. "Trust in Public Institutions over the Business Cycle," American Economic Review, American Economic Association, vol. 101(3), pages 281-87, May.
- Stevenson, Betsey & Wolfers, Justin, 2011. "Trust in Public Institutions over the Business Cycle," CEPR Discussion Papers 8308, C.E.P.R. Discussion Papers.
- Betsey Stevenson & Justin Wolfers, 2011. "Trust in Public Institutions over the Business Cycle," NBER Working Papers 16891, National Bureau of Economic Research, Inc.
- Betsey Stevenson & Justin Wolfers, 2011. "Trust in Public Institutions over the Business Cycle," CESifo Working Paper Series 3389, CESifo Group Munich.
- Betsey Stevenson & Justin Wolfers, 2011. "Trust in Public Institutions over the Business Cycle," CAMA Working Papers 2011-06, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Betsey Stevenson & Justin Wolfers, 2011. "Trust in public institutions over the business cycle," Working Paper Series 2011-11, Federal Reserve Bank of San Francisco.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
- K0 - Law and Economics - - General
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
- 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-2011-03-26 (All new papers)
- NEP-BEC-2011-03-26 (Business Economics)
- NEP-CBA-2011-03-26 (Central Banking)
- NEP-SOC-2011-03-26 (Social Norms & Social Capital)
Please 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.:
- Wolfers, Justin, 2003.
"Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Well-Being,"
Wiley Blackwell, vol. 6(1), pages 1-26, Spring.
- Justin Wolfers, 2003. "Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Wellbeing," NBER Working Papers 9619, National Bureau of Economic Research, Inc.
- Wolfers, Justin, 2003. "Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Well-Being," Research Papers 1751r, Stanford University, Graduate School of Business.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- Bursian, Dirk & Weichenrieder, Alfons J. & Zimmer, Jochen, 2013.
"Trust in government and fiscal adjustments,"
SAFE Working Paper Series
22, Center of Excellence SAFE - Sustainable Architecture for Finance in Europe, Goethe University Frankfurt.
- Roth, Felix & Gros, Daniel & Nowak-Lehmann D., Felicitas, 2012. "Has the financial crisis eroded citizens' trust in the European Central Bank? Panel data evidence for the Euro area, 1999-2011," Center for European, Governance and Economic Development Research Discussion Papers 124, University of Goettingen, Department of Economics.
- Zohal Hessami, 2011. "What Determines Trust in International Organizations?," Working Paper Series of the Department of Economics, University of Konstanz 2011-44, Department of Economics, University of Konstanz.
- Thomas Otter, 2013. "Crisis and Trust in National and European Union Institutions — Panel Evidence for the EU, 1999 to 2012," EUI-RSCAS Working Papers 31, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- Fischer, Justina, 2011. "Living under the ‘right’ government: does political ideology matter to trust in political institutions? An analysis for OECD countries," MPRA Paper 33344, University Library of Munich, Germany.
- Daniel Treisman, 2011. "Income, Democracy, and the Cunning of Reason," NBER Working Papers 17132, National Bureau of Economic Research, Inc.
- Ehrmann, Michael & Soudan, Michel & Stracca, Livio, 2012.
"Explaining EU Citizens' Trust in the ECB in Normal and Crisis Times,"
289, Institute for Advanced Studies.
- Ehrmann, Michael & Soudan, Michel & Stracca, Livio, 2012. "Explaining EU citizens’ trust in the ECB in normal and crisis times," Working Paper Series 1501, European Central Bank.
- Berggren, Niclas & Daunfeldt, Sven-Olov & Hellström, Jörgen, 2012.
"Social trust and central-bank independence,"
HUI Working Papers
66, HUI Research.
- Grosjean, Pauline & Ricka, Frantisek & Senik, Claudia, 2013. "Learning, political attitudes and crises: Lessons from transition countries," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 490-505.
- Viitanen, Tarja, 2011. "Parental Divorce and Generalized Trust," IZA Discussion Papers 5898, Institute for the Study of Labor (IZA).
- Hessami, Zohal, 2011. "What determines trust in international organizations? An empirical analysis for the IMF, the World Bank, and the WTO," MPRA Paper 34550, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.