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Citizens' Distrust in Government and Project Implementation in the Public Sector


  • Hyungna Oh

    (Kyung Hee University)

  • Jong Ho Hong

    (Seoul National University)


Using survey data, this paper shows that citizens�� subjective trust in either government itself or its capacity to complete an announced goal can largely influence their willingnessto-pay for a public project administered by the government. Given that distrust toward the government prevails in most advanced economies, this outcome raises concerns that distrust can be a plague in implementing public projects administered by the government.

Suggested Citation

  • Hyungna Oh & Jong Ho Hong, 2014. "Citizens' Distrust in Government and Project Implementation in the Public Sector," Korean Economic Review, Korean Economic Association, vol. 30, pages 25-40.
  • Handle: RePEc:kea:keappr:ker-20140630-30-1-02

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    References listed on IDEAS

    1. Lorenz, Edward, 1999. "Trust, Contract and Economic Cooperation," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 301-315, May.
    2. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    3. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    4. Dirk Czarnitzki & Federico Etro & Kornelius Kraft, 2014. "Endogenous Market Structures and Innovation by Leaders: An Empirical Test," Economica, London School of Economics and Political Science, vol. 81(321), pages 117-139, January.
    5. Marina Della Giusta, 2008. "A theory of trust based systems of intermediation," Cambridge Journal of Economics, Oxford University Press, vol. 32(1), pages 65-81, January.
    6. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    7. Blamey, Russell K, 1998. "Trust, Responsibility and the Interpretation of Contingent Valuation Results," Australian Economic Papers, Wiley Blackwell, vol. 37(3), pages 273-291, September.
    8. Blackburn, Keith & Christensen, Michael, 1989. "Monetary Policy and Policy Credibility: Theories and Evidence," Journal of Economic Literature, American Economic Association, vol. 27(1), pages 1-45, March.
    9. Smith, Richard J, 1987. "Testing for Exogeneity in Limited Dependent Variable Models Using a Simplified Likelihood Ratio Statistic," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 2(3), pages 237-245, July.
    10. Sean Richey & Ken'ichi Ikeda, 2009. "Institutional Incentives and Trust: Marginalized Groups and the Creation of Trust in Local Government," Social Science Quarterly, Southwestern Social Science Association, vol. 90(4), pages 911-926, December.
    11. Grabel, Ilene, 2000. "The Political Economy of 'Policy Credibility': The New-Classical Macroeconomics and the Remaking of Emerging Economies," Cambridge Journal of Economics, Oxford University Press, vol. 24(1), pages 1-19, January.
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    Cited by:

    1. Hua Wang & Jie He & Desheng Huang, 2018. "Valuation Biases Caused by Public Distrust: Identification and Calibration with Contingent Valuation Studies of Two Air Quality Improvement Programs in China," Cahiers de recherche 18-05, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.

    More about this item


    Distrust; Trustworthiness; Willingness-to-pay; Public Project;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles


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