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Trust and preferences: evidence from survey data

Author

Listed:
  • Giuseppe Albanese

    () (Bank of Italy)

  • Guido de Blasio

    () (Bank of Italy)

  • Paolo Sestito

    () (Bank of Italy)

Abstract

This paper considers the role of preferences in explaining trust. By using the Bank of Italy�s Survey on Household Income and Wealth (SHIW), the paper shows that time preferences and risk preferences are key covariates of self-reported trust. They both predict negatively a measure of generalized trust; however, risk aversion is positively correlated with an index of particularized trusting behaviour (which refers to family and friends). Moreover, the results are robust to using a different data source to gauge the role of social preferences and personality traits. The study highlights that neglecting preferences when analysing the role of trust in explaining socio-economic outcomes might pose serious challenges in terms of omitted variables.

Suggested Citation

  • Giuseppe Albanese & Guido de Blasio & Paolo Sestito, 2013. "Trust and preferences: evidence from survey data," Temi di discussione (Economic working papers) 911, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_911_13
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    References listed on IDEAS

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    Cited by:

    1. Giuseppe Albanese & Guido Blasio & Paolo Sestito, 2016. "My parents taught Me. Evidence on the family transmission of values," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(2), pages 571-592, April.
    2. Salamanca, N. & de Grip, A. & Fouarge, D. & Montizaan, R.M., 2013. "Locus of control and investment in risky assets," Research Memorandum 052, Maastricht University, Graduate School of Business and Economics (GSBE).
    3. Guido de Blasio & Diego Scalise & Paolo Sestito, 2014. "Universalism vs. particularism: a round trip from sociology to economics," Questioni di Economia e Finanza (Occasional Papers) 212, Bank of Italy, Economic Research and International Relations Area.
    4. Marco Paccagnella & Paolo Sestito, 2014. "School cheating and social capital," Education Economics, Taylor & Francis Journals, vol. 22(4), pages 367-388, August.
    5. Stacchini, Massimiliano & Degasperi, Petra, 2015. "Trust, family businesses and financial intermediation," Journal of Corporate Finance, Elsevier, vol. 33(C), pages 293-316.

    More about this item

    Keywords

    trust; preferences; survey data;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • Z1 - Other Special Topics - - Cultural Economics

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