IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v40y2011i5p583-593.html
   My bibliography  Save this article

Trust and institutions: A multilevel analysis

Author

Listed:
  • Wang, Lanlan
  • Gordon, Peter

Abstract

In this study, we argue that levels of trust are shaped by formal and informal institutions. We discuss statistical test results that support this view. These utilize World Value Survey results and related data sources to examine the ways that institutions and contextual factors affect individuals’ self-reported trust levels. This investigation is the first, to our knowledge, to take into account micro-unit along with macro-unit characteristics to analyze the nature of contextual effects and does so by applying a multilevel regression approach.

Suggested Citation

  • Wang, Lanlan & Gordon, Peter, 2011. "Trust and institutions: A multilevel analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 583-593.
    • Handle: RePEc:eee:soceco:v:40:y:2011:i:5:p:583-593
    DOI: 10.1016/j.socec.2011.04.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1053535711000461
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.socec.2011.04.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
    2. Dawson, John W., 2003. "Causality in the freedom-growth relationship," European Journal of Political Economy, Elsevier, vol. 19(3), pages 479-495, September.
    3. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2003. "People's opium? Religion and economic attitudes," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 225-282, January.
    4. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 811-846.
      • Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
    5. Jone L. Pearce & Imre Branyiczki & Gregory A. Bigley, 2000. "Insufficient Bureaucracy: Trust and Commitment in Particularistic Organizations," Organization Science, INFORMS, vol. 11(2), pages 148-162, April.
    6. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    7. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    8. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    9. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, June.
    10. Niclas Berggren & Henrik Jordahl, 2006. "Free to Trust: Economic Freedom and Social Capital," Kyklos, Wiley Blackwell, vol. 59(2), pages 141-169, May.
    11. Beugelsdijk, S. & van Schaik, A.B.T.M., 2001. "Social Capital and Regional Economic Growth," Discussion Paper 2001-102, Tilburg University, Center for Economic Research.
    12. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    13. Sjoerd Beugelsdijk, 2006. "A note on the theory and measurement of trust in explaining differences in economic growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(3), pages 371-387, May.
    14. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    15. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367, April.
    16. Geertz, Clifford, 1978. "The Bazaar Economy: Information and Search in Peasant Marketing," American Economic Review, American Economic Association, vol. 68(2), pages 28-32, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jetter, Michael & Kristoffersen, Ingebjørg, 2018. "Financial shocks and the erosion of interpersonal trust: Evidence from longitudinal data," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 162-176.
    2. Ippolito, Marzia & Cozzolino, Adriano & Ercolano, Salvatore, 2024. "If you really love nothing. Evaluating second-order factors in the case of Italian constitutional referendum of 2020," Evaluation and Program Planning, Elsevier, vol. 103(C).
    3. Chen, Na & Yang, Huan, 2024. "From rural to urban: Clan, urbanization and trust," China Economic Review, Elsevier, vol. 85(C).
    4. Martin Fochmann & Björn Jahnke & Andreas Wagener, 2019. "Does the reliability of institutions affect public good contributions? Evidence from a laboratory experiment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 66(3), pages 434-458, July.
    5. Chao-Hung Wang & Kuan-Liang Chen, 2018. "Do Relationships have a Dark Side for Innovation Performance in the High-Tech Industry?," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 1-22, April.
    6. In Do Hwang, 2017. "Which Type of Trust Matters?:Interpersonal vs. Institutional vs. Political Trust," Working Papers 2017-15, Economic Research Institute, Bank of Korea.
    7. Lorenzo Frangi & Sebastian Koos & Sinisa Hadziabdic, 2017. "In Unions We Trust! Analysing Confidence in Unions across Europe," British Journal of Industrial Relations, London School of Economics, vol. 55(4), pages 831-858, December.
    8. Marianna Bartiromo & Enrico Ivaldi, 2021. "Political Participation in the Risk Society: The Italian Case," JRFM, MDPI, vol. 14(9), pages 1-18, September.
    9. Behrooz Hassani-Mahmooei & Brett W. Parris, 2014. "Dynamics of effort allocation and evolution of trust: an agent-based model," Computational and Mathematical Organization Theory, Springer, vol. 20(2), pages 133-154, June.
    10. Cheikh Loucoubar & Richard Paul & Avner Bar-Hen & Augustin Huret & Adama Tall & Cheikh Sokhna & Jean-François Trape & Alioune Badara Ly & Joseph Faye & Abdoulaye Badiane & Gaoussou Diakhaby & Fatoumat, 2011. "An Exhaustive, Non-Euclidean, Non-Parametric Data Mining Tool for Unraveling the Complexity of Biological Systems – Novel Insights into Malaria," PLOS ONE, Public Library of Science, vol. 6(9), pages 1-16, September.
    11. Hassani Mahmooei, Behrooz & Parris, Brett, 2012. "Dynamics of effort allocation and evolution of trust: an agent-based model," MPRA Paper 44919, University Library of Munich, Germany.
    12. Ewa Gruszewska, 2014. "Changes In Informal Institutions In Poland And Transition Countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 9(1), pages 39-55, March.
    13. Grosso, Monica & Castaldo, Sandro & Li, Hua (Ariel) & Larivière, Bart, 2020. "What Information Do Shoppers Share? The Effect of Personnel-, Retailer-, and Country-Trust on Willingness to Share Information," Journal of Retailing, Elsevier, vol. 96(4), pages 524-547.
    14. Gaël Plumecocq, 2013. "The Institutionalisation of Multi-level Changes: Sustainable Development, Values and Territory," Post-Print hal-00994871, HAL.
    15. Butzbach, Olivier, 2014. "Trust in banks: a tentative conceptual framework," MPRA Paper 53587, University Library of Munich, Germany.
    16. Ding, Zhujun & Au, Kevin & Chiang, Flora, 2015. "Social trust and angel investors' decisions: A multilevel analysis across nations," Journal of Business Venturing, Elsevier, vol. 30(2), pages 307-321.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cline, Brandon N. & Williamson, Claudia R., 2016. "Trust and the regulation of corporate self-dealing," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 572-590.
    2. Mehmet Fatih Ekinci & Şebnem Kalemli-Özcan & Bent E. Sørensen, 2009. "Financial Integration within EU Countries: The Role of Institutions, Confidence and Trust," NBER Chapters, in: NBER International Seminar on Macroeconomics 2007, pages 325-391, National Bureau of Economic Research, Inc.
    3. Stephen Knowles & P. Dorian Owen, 2010. "Which Institutions are Good for Your Health? The Deep Determinants of Comparative Cross-country Health Status," Journal of Development Studies, Taylor & Francis Journals, vol. 46(4), pages 701-723.
    4. Horváth, Roman, 2013. "Does trust promote growth?," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 777-788.
    5. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1015-1049.
    6. Pevzner, Mikhail & Xie, Fei & Xin, Xiangang, 2015. "When firms talk, do investors listen? The role of trust in stock market reactions to corporate earnings announcements," Journal of Financial Economics, Elsevier, vol. 117(1), pages 190-223.
    7. Robbert Maseland, 2013. "Parasitical cultures? The cultural origins of institutions and development," Journal of Economic Growth, Springer, vol. 18(2), pages 109-136, June.
    8. Sangnier, Marc, 2013. "Does trust favor macroeconomic stability?," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 653-668.
    9. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(2), pages 645-677.
    10. Yann Algan & Pierre Cahuc, 2014. "Trust, Well-Being and Growth: New Evidence and Policy Implications," Post-Print hal-01169659, HAL.
    11. Massa, Massimo & li, zhe & xu, niahang & Zhang, Hong, 2016. "The Impact of Sin Culture: Evidence from Earning Management and Alcohol Consumption in China," CEPR Discussion Papers 11475, C.E.P.R. Discussion Papers.
    12. In Do Hwang, 2017. "Which Type of Trust Matters?:Interpersonal vs. Institutional vs. Political Trust," Working Papers 2017-15, Economic Research Institute, Bank of Korea.
    13. Argentiero, Amedeo & Cerqueti, Roy & Sabatini, Fabio, 2021. "Does social capital explain the Solow residual? A DSGE approach," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 35-53.
    14. Algan, Yann & Cahuc, Pierre, 2014. "Trust, Growth, and Well-Being: New Evidence and Policy Implications," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 2, pages 49-120, Elsevier.
    15. Pascal Gantenbein & Axel Kind & Christophe Volonté, 2019. "Individualism and Venture Capital: A Cross-Country Study," Management International Review, Springer, vol. 59(5), pages 741-777, October.
    16. Ho, Kung-Cheng & Yen, Huang-Ping & Gu, Yan & Shi, Lisi, 2020. "Does societal trust make firms more trustworthy?," Emerging Markets Review, Elsevier, vol. 42(C).
    17. Xin, Guangyi, 2017. "Trust and Economic Performance: A Panel Study," MPRA Paper 80815, University Library of Munich, Germany.
    18. Stephen Knowles, 2006. "Is Social Capital Part of the Institutions Continuum and is it a Deep Determinant of Development?," WIDER Working Paper Series RP2006-25, World Institute for Development Economic Research (UNU-WIDER).
    19. Blaine G Robbins, 2012. "A Blessing and a Curse? Political Institutions in the Growth and Decay of Generalized Trust: A Cross-National Panel Analysis, 1980–2009," PLOS ONE, Public Library of Science, vol. 7(4), pages 1-14, April.
    20. Benito Arruñada, 2010. "Protestants and Catholics: Similar Work Ethic, Different Social Ethic," Economic Journal, Royal Economic Society, vol. 120(547), pages 890-918, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:40:y:2011:i:5:p:583-593. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.