IDEAS home Printed from https://ideas.repec.org/p/zbw/sfb373/200324.html
   My bibliography  Save this paper

On Representative Trust

Author

Listed:
  • Bellemare, Charles
  • Kröger, Sabine

Abstract

Because of its relation to economic growth, there is a policy interest in mea- suring social capital and average trust as its currently most important proxy. Thereby a main focus is determining its variation across groups with different individual characteristics. In this paper we combine the virtue of laboratory experiments and survey data analysis. We present results from a novel experiment conducted on a representative sample of the Dutch population. The advantages of this combination of methods are to shed light on four almost undocumented yet important issues in trust economics. Our results can briefly be summarized as follows. We do not find evidence of a participation selectivity bias which is a serious concern for laboratory experiments which rely almost exclusively on volunteer participants. Contrary to the existing literature, we find that stated trust measures correlate with experimental trust. The differences in parameter estimates across both measures are significant, but do not hold a jointly test. We also find that the age and education profiles of trust are opposite to those of reciprocal behavior. Finally, we find that the choice of proxy variable for social capital matters greatly, leading to very different inferences.

Suggested Citation

  • Bellemare, Charles & Kröger, Sabine, 2003. "On Representative Trust," SFB 373 Discussion Papers 2003,24, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  • Handle: RePEc:zbw:sfb373:200324
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/22239/1/dpsfb200324.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ernst Fehr & Urs Fischbacher & Bernhard von Rosenbladt & J�rgen Schupp & Gert G. Wagner, "undated". "A Nation-Wide Laboratory: Examining trust and trustworthiness by integrating behavioral experiments into representative surveys," IEW - Working Papers 141, Institute for Empirical Research in Economics - University of Zurich.
    2. Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-1460, November.
    3. Oxoby, Robert J. & McLeish, Kendra N., 2004. "Sequential decision and strategy vector methods in ultimatum bargaining: evidence on the strength of other-regarding behavior," Economics Letters, Elsevier, vol. 84(3), pages 399-405, September.
    4. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1251-1288.
    5. Jordi Brandts & Gary Charness, 2000. "Hot vs. Cold: Sequential Responses and Preference Stability in Experimental Games," Experimental Economics, Springer;Economic Science Association, vol. 2(3), pages 227-238, March.
    6. Glenn W. Harrison & Morten I. Lau & Melonie B. Williams, 2002. "Estimating Individual Discount Rates in Denmark: A Field Experiment," American Economic Review, American Economic Association, vol. 92(5), pages 1606-1617, December.
    7. Ruud, Paul A., 2000. "An Introduction to Classical Econometric Theory," OUP Catalogue, Oxford University Press, number 9780195111644.
    8. Camerer, Colin F & Hogarth, Robin M, 1999. "The Effects of Financial Incentives in Experiments: A Review and Capital-Labor-Production Framework," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 7-42, December.
    9. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November.
    10. John A. List, 2004. "Young, Selfish and Male: Field evidence of social preferences," Economic Journal, Royal Economic Society, vol. 114(492), pages 121-149, January.
    11. Michael S. Haigh & John A. List, 2005. "Do Professional Traders Exhibit Myopic Loss Aversion? An Experimental Analysis," Journal of Finance, American Finance Association, vol. 60(1), pages 523-534, February.
    12. Werner Güth & Carsten Schmidt & Matthias Sutter, 2003. "Fairness in the Mail and Opportunism in the Internet: A Newspaper Experiment on Ultimatum Bargaining," German Economic Review, Verein für Socialpolitik, vol. 4(2), pages 243-265, May.
    13. Croson, Rachel T. A., 2000. "Thinking like a game theorist: factors affecting the frequency of equilibrium play," Journal of Economic Behavior & Organization, Elsevier, vol. 41(3), pages 299-314, March.
    14. Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February.
    15. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    16. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    17. Jonathan Gruber & David Wise, 2001. "An International Perspective on Policies for an Aging Society," NBER Working Papers 8103, National Bureau of Economic Research, Inc.
    18. Engle-Warnick, Jim & Slonim, Robert L., 2004. "The evolution of strategies in a repeated trust game," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 553-573, December.
    19. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
    20. Carpenter, Jeffrey P. & Daniere, Amrita G. & Takahashi, Lois M., 2004. "Cooperation, trust, and social capital in Southeast Asian urban slums," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 533-551, December.
    21. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
    22. Elinor Ostrom, 2000. "Collective Action and the Evolution of Social Norms," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 137-158, Summer.
    23. Andreas Ortmann & John Fitzgerald & Carl Boeing, 2000. "Trust, Reciprocity, and Social History: A Re-examination," Experimental Economics, Springer;Economic Science Association, vol. 3(1), pages 81-100, June.
    24. Abbink, Klaus & Irlenbusch, Bernd & Renner, Elke, 2000. "The moonlighting game: An experimental study on reciprocity and retribution," Journal of Economic Behavior & Organization, Elsevier, vol. 42(2), pages 265-277, June.
    25. Chaudhuri, Ananish & Gangadharan, Lata, 2003. "Gender Differences in Trust and Reciprocity," Working Papers 136, Department of Economics, The University of Auckland.
    26. Catherine Eckel & Philip Grossman, 2000. "Volunteers and Pseudo-Volunteers: The Effect of Recruitment Method in Dictator Experiments," Experimental Economics, Springer;Economic Science Association, vol. 3(2), pages 107-120, October.
    27. Willinger, Marc & Keser, Claudia & Lohmann, Christopher & Usunier, Jean-Claude, 2003. "A comparison of trust and reciprocity between France and Germany: Experimental investigation based on the investment game," Journal of Economic Psychology, Elsevier, vol. 24(4), pages 447-466, August.
    28. Burks, Stephen V. & Carpenter, Jeffrey P. & Verhoogen, Eric, 2003. "Playing both roles in the trust game," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 195-216, June.
    29. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    30. Hurd, Michael, 1979. "Estimation in truncated samples when there is heteroscedasticity," Journal of Econometrics, Elsevier, vol. 11(2-3), pages 247-258.
    31. Selten, Reinhard & Ockenfels, Axel, 1998. "An experimental solidarity game," Journal of Economic Behavior & Organization, Elsevier, vol. 34(4), pages 517-539, March.
    32. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
    33. David Lucking-Reiley, 1999. "Using Field Experiments to Test Equivalence between Auction Formats: Magic on the Internet," American Economic Review, American Economic Association, vol. 89(5), pages 1063-1080, December.
    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. Bellemare, Charles & Kroger, Sabine, 2007. "On representative social capital," European Economic Review, Elsevier, vol. 51(1), pages 183-202, January.
    2. Ashraf, Nava & Bohnet, Iris & Piankov, Nikita, 2003. "Is Trust a Bad Investment?," Working Paper Series rwp03-047, Harvard University, John F. Kennedy School of Government.
    3. Ermisch, John & Gambetta, Diego, 2006. "People's trust: the design of a survey-based experiment," ISER Working Paper Series 2006-34, Institute for Social and Economic Research.
    4. Antoni Bosch-Domenech & Rosemarie Nagel & Juan Sanchez-Andres, 2005. "Social capabilities preserved in alzheimer patients," Artefactual Field Experiments 00012, The Field Experiments Website.
    5. Alvin Etang Ndip & David Fielding & Stephen Knowles, 2007. "Survey Trust, Experimental Trust and ROSCA Membership in Rural Cameroon," Working Papers 0713, University of Otago, Department of Economics, revised Nov 2007.
    6. Gachter, Simon & Herrmann, Benedikt & Thoni, Christian, 2004. "Trust, voluntary cooperation, and socio-economic background: survey and experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 505-531, December.
    7. Abigail Barr, 2004. "Rational and Biased Trust," Development and Comp Systems 0409068, University Library of Munich, Germany.
    8. Papa Stefano, 2011. "Oltre l’egoismo: L’approccio comportamentale alle preferenze," wp.comunite 0077, Department of Communication, University of Teramo.
    9. Papa Stefano, 2011. "Come misurare fiducia, reciprocità e altruismo," wp.comunite 0078, Department of Communication, University of Teramo.
    10. Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2005. "An Experimental Study of the Effects of Inequality and Relative Deprivation on Trusting Behavior," Working Papers 14, Department of Economics, College of William and Mary.
    11. Matthias Sutter & Martin Kocher, 2004. "Age And The Development Of Trust And Reciprocity," Royal Economic Society Annual Conference 2004 105, Royal Economic Society.
    12. Holm, Håkan & Nystedt, Paul, 2005. "Trust in surveys and games - a matter of money and location?," Working Papers 2005:26, Lund University, Department of Economics, revised 15 Aug 2005.
    13. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    14. Beugelsdijk, Sjoerd & van Schaik, Ton, 2005. "Social capital and growth in European regions: an empirical test," European Journal of Political Economy, Elsevier, vol. 21(2), pages 301-324, June.
    15. Johnson, Noel D. & Mislin, Alexandra A., 2011. "Trust games: A meta-analysis," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 865-889.
    16. Antoni Bosch-Domènech & Rosemarie Nagel & Juan Vicente Sánchez-Andrés, 2007. "Social capabilities in Alzheimer’s patients," Economics Working Papers 1020, Department of Economics and Business, Universitat Pompeu Fabra.
    17. Fehr, Ernst & Schmidt, Klaus M., 2005. "The Economics of Fairness, Reciprocity and Altruism – Experimental Evidence and New Theories," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 66, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    18. Falk, Armin & Fehr, Ernst, 2003. "Why labour market experiments?," Labour Economics, Elsevier, vol. 10(4), pages 399-406, August.

    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. Bellemare, Charles & Kroger, Sabine, 2007. "On representative social capital," European Economic Review, Elsevier, vol. 51(1), pages 183-202, January.
    2. repec:tiu:tiucen:200457 is not listed on IDEAS
    3. repec:tiu:tiucen:200347 is not listed on IDEAS
    4. Bellemare, C. & Kroger, S., 2003. "On Representative Trust," Other publications TiSEM 5b4c2638-b100-4442-8afa-5, Tilburg University, School of Economics and Management.
    5. Juan Camilo Cardenas & Jeffrey P. Carpenter, 2005. "Experiments and Economic Development: Lessons from Field Labs in the Developing World," Middlebury College Working Paper Series 0505, Middlebury College, Department of Economics.
    6. Ashraf, Nava & Bohnet, Iris & Piankov, Nikita, 2003. "Is Trust a Bad Investment?," Working Paper Series rwp03-047, Harvard University, John F. Kennedy School of Government.
    7. Johansson-Stenman, Olof & Mahmud, Minhaj & Martinsson, Peter, 2013. "Trust, trust games and stated trust: Evidence from rural Bangladesh," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 286-298.
    8. Matthias Sutter & Martin Kocher, 2004. "Age And The Development Of Trust And Reciprocity," Royal Economic Society Annual Conference 2004 105, Royal Economic Society.
    9. Brülhart, Marius & Usunier, Jean-Claude, 2004. "Verified Trust: Reciprocity, Altruism and Noise in Trust Games," CEPR Discussion Papers 4758, C.E.P.R. Discussion Papers.
    10. Bellemare, C. & Kroger, S., 2004. "On Representative Social Capital," Other publications TiSEM 1057ef4e-faab-431c-b7e4-c, Tilburg University, School of Economics and Management.
    11. Sutter, Matthias & Kocher, Martin G., 2007. "Trust and trustworthiness across different age groups," Games and Economic Behavior, Elsevier, vol. 59(2), pages 364-382, May.
    12. Ciriolo, Emanuele, 2007. "Inequity aversion and trustees' reciprocity in the trust game," European Journal of Political Economy, Elsevier, vol. 23(4), pages 1007-1024, December.
    13. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
    14. Juan Camilo Cardenas & Jeffrey Carpenter, 2008. "Behavioural Development Economics: Lessons from Field Labs in the Developing World," Journal of Development Studies, Taylor & Francis Journals, vol. 44(3), pages 311-338.
    15. Lisa Anderson & Jennifer Mellor & Jeffrey Milyo, 2006. "Induced heterogeneity in trust experiments," Experimental Economics, Springer;Economic Science Association, vol. 9(3), pages 223-235, September.
    16. Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2005. "An Experimental Study of the Effects of Inequality and Relative Deprivation on Trusting Behavior," Working Papers 14, Department of Economics, College of William and Mary.
    17. Greiner, Ben & Ockenfels, Axel & Werner, Peter, 2012. "The dynamic interplay of inequality and trust—An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 355-365.
    18. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 645-677.
    19. Luo, Jun & Wang, Xinxin, 2020. "Hukou identity and trust—Evidence from a framed field experiment in China," China Economic Review, Elsevier, vol. 59(C).
    20. Johansson-Stenman, Olof, 2008. "Who are the trustworthy, we think?," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 456-465, December.
    21. 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.
    22. Thöni, Christian & Tyran, Jean-Robert & Wengström, Erik, 2012. "Microfoundations of social capital," Journal of Public Economics, Elsevier, vol. 96(7-8), pages 635-643.

    More about this item

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

    Statistics

    Access and download statistics

    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:zbw:sfb373:200324. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/sfhubde.html .

    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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/sfhubde.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.