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Trustworthiness and economic performance

Author

Listed:
  • Breuer, Janice Boucher
  • McDermott, John

Abstract

Intrinsically trustworthy agents never cheat. A society's willingness to trust and the quality of its institutions have their origins in the intrinsic trustworthiness of its citizens. Trustworthiness is the basis for maximizing output in economic exchange and in explaining differences in standards of living around the world. We measure intrinsic trustworthiness with a question from the World Values Survey and estimate its effect using a sample of 60 countries. We find that trustworthiness is important for output per capita and that the effect of trust is likely to come from trustworthiness.

Suggested Citation

  • Breuer, Janice Boucher & McDermott, John, 2009. "Trustworthiness and economic performance," MPRA Paper 16777, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:16777
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    File URL: https://mpra.ub.uni-muenchen.de/24486/2/MPRA_paper_24486.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Breuer, Janice Boucher & McDermott, John, 2009. "Trust and the Distribution of Caution," MPRA Paper 18112, University Library of Munich, Germany.
    2. Breuer, Janice Boucher & McDermott, John, 2012. "Culture, caution, and trust," Journal of Development Economics, Elsevier, vol. 97(1), pages 15-23.
    3. Breuer, Janice Boucher & McDermott, John, 2009. "Respect, responsibility, and production," MPRA Paper 18111, University Library of Munich, Germany.

    More about this item

    Keywords

    trustworthiness; trust; institutions; output per capita;

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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