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Measuring trust in institutions

Author

Listed:
  • Fredrik Carlsson
  • Eyoual Demeke
  • Peter Martinsson
  • Tewodros Tesemma

Abstract

Trust in institutions is important for economic prosperity. We present results from a field study where we compare stated trust in institutions in general, stated trust in employees at institutions, and amount sent to employees at institutions using a trust game. Including more than 250 entrepreneurs in Addis Ababa in Ethiopia, we examine levels of trust towards entrepreneurship development agency, district administration, tax authority, and electric utility. There is a positive and sizeable significant correlation between stated trust and trust game. Furthermore, we find that generalized trust is weakly correlated with trust in specific institutions both compared with stated trust, and trust game. Given the large heterogeneity in levels of trust to specific institutions, we argue it is important to elicit institution-specific levels of trust.

Suggested Citation

  • Fredrik Carlsson & Eyoual Demeke & Peter Martinsson & Tewodros Tesemma, 2024. "Measuring trust in institutions," Oxford Economic Papers, Oxford University Press, vol. 76(1), pages 22-40.
    • Handle: RePEc:oup:oxecpp:v:76:y:2024:i:1:p:22-40.
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    File URL: http://hdl.handle.net/10.1093/oep/gpac047
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    Cited by:

    1. Álvarez, Inmaculada C. & Barbero, Javier & Orea, Luis & Rodríguez-Pose, Andrés, 2026. "How institutions shape the economic returns to investment in European regions?," Economic Modelling, Elsevier, vol. 155(C).
    2. Carlsson, Fredrik & Demeke, Eyoual & Martinsson, Peter & Tesemma, Tewodros, 2020. "Cost of power outages for manufacturing firms in Ethiopia: A stated preference study," Energy Economics, Elsevier, vol. 88(C).

    More about this item

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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