Hostname: page-component-586b7cd67f-gb8f7 Total loading time: 0 Render date: 2024-11-25T04:47:44.181Z Has data issue: false hasContentIssue false
  • English
  • Français

Individual trust: does quality of local institutions matter?

Published online by Cambridge University Press:  29 October 2018

Silvia Camussi  and
Anna Laura Mancini Open the ORCID record for Anna Laura Mancini [Opens in a new window]
Silvia Camussi
Affiliation:
Economic Research Unit, Turin Branch, Bank of Italy
Anna Laura Mancini*
Affiliation:
Economic Research Unit, Turin Branch, Bank of Italy
*
*Corresponding author. Email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper contributes to the literature on the determinants of trust by investigating how the quality of local services influences individuals’ generalized trust and trust in local governments. Using data from Italian national statistical office (Istat) Aspects of Daily Life survey, after building a new measure for the quality of local services, we study its effect on individuals’ trust using linear regressions techniques. Our findings suggest that good local public services have a positive impact on individuals’ trust, the effect being stronger for trust in local institutions. Our results are robust to potential endogeneity issues, tested using a two-step GMM estimation procedure, and to potential omitted variables bias, according to the method proposed by Altonji et al. (2005).

Keywords

Trusttrust in local institutionsquality of public serviceslinear regressionIV estimation
Type
Research Article
Information
Journal of Institutional Economics , Volume 15 , Issue 3 , June 2019 , pp. 487 - 503
Copyright
Copyright © Millennium Economics Ltd 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Accetturo, A., De Blasio, G. and Ricci, L. (2014), “A Tale of an Unwanted Outcome: Transfers and Local Endowments of Trust and Cooperation,” Journal of Economic Behaviour and Organisation, 102: 74–89.Google Scholar
Albanese, G., De Blasio, G. and Sestito, P. (2016), “My Father Taught Me: Evidence on the Family Transmission of Values,” Journal of Population Economics, 29: 571–92.Google Scholar
Alesina, A. and Giuliano, P. (2011), “Family Ties and Political Participation,” Journal of the European Economic Association, 9: 817–39.Google Scholar
Alesina, A. and Giuliano, P. (2015), “Culture and institutions,” Journal of Economic Literature, 53: 898–944.Google Scholar
Alesina, A. and La Ferrara, E. (2002), “Who Trust Others?,” Journal of Public Economics, 85: 207–234.Google Scholar
Algan, A. and Cahuc, P. (2014), “Trust, Growth and Well-being: New Evidence and Policy Implications,” in Aghion, P. and Durlauf, S. N. (eds), Handbook of Economic Growth, North Holland: ElsevierGoogle Scholar
Altonji, J., Todd, E. and Taber, C. (2005), “Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools,” Journal of Political Economy, 113: 151–184.Google Scholar
Barone, G. and Mocetti, S. (2011), “Tax Morale and Public Spending Inefficiency,” International Tax and Public Finance, 18: 724–749.Google Scholar
Bellamare, C. and Kroger, S. (2007), “On Representative Social Capital,” European Economic Review, 51: 183–202.Google Scholar
Bellows, J. and Miguel, E. (2009), “War and the collective action in Sierra Leone,” Journal of Public Economics, 93: 1144–1157.Google Scholar
Bjørnskov, C. (2006), “Determinants of Generalized Trust: A Cross-country Comparison,” Public Choice, 130: 1–21.Google Scholar
Brehm, J. and Rahn, W. (1997), “Individual-level Evidence for the Causes and Consequences of Social Capital,” American Journal of Political Science, 41: 999–1023.Google Scholar
Bripi, F., Carmignani, A. and Giordano, F. (2011), “La qualità dei servizi pubblici in Italia,” Questioni di Economia e Finanza, no. 84.Google Scholar
Buchan, N., Croson, R. and Solnick, S. (2008), “Trust and Gender: An Examination of Behaviour and Beliefs in the Investment Game,” Journal of Economic Behaviour and Organization, 68: 466–476.Google Scholar
Charron, N., Lapuente, V. and Dijkstra, L. (2014), “Regional Governance Matters: Quality of Government within European Union Member States,” Regional Studies, 48: 68–90.Google Scholar
Christensen, T. and Laegreid, P. (2005), “Trust in Government: The Relative Importance of Service Satisfaction, Political Factors and Demography,” Public Performance & Management Review, 28: 487–511.Google Scholar
Clark, A. K. and Eisenstein, M. A. (2013), “Interpersonal Trust: An Age–Period–Cohort Analysis Revisited,” Social Science Research, 42: 361–375.Google Scholar
Cook, K. S., Kramer, R. M., Thom, D. H., Stepanikova, I., Bailey Mollborn, S. and Cooper, R. M. (2004), “Trust and Distrust in Patient–Physician Relationship: Perceived Determinants of High- and Low-trust Relationships in Managed-care Settings,” in Kramer, R. M. and Cook, K. S. (eds) Trust and Distrust in Organizations: Dilemmas and Approaches, (Series on Trust, vol. 7), New York: Russell Sage Foundation.Google Scholar
Del Monte, A. and Papagni, E. (2007), “The Determinants of Corruption in Italy: Regional Panel Data Analysis,” European Journal of Political Economy, 23: 379–396.Google Scholar
Delhey, J. and Newton, K. (2003), “Who Trust? The Origins of Social Trust in Seven Societies,” European Societies, 5: 93–127.Google Scholar
Delhey, J., Newton, K. and Welzel, C. (2011), “How General is Trust in ‘Most People’? Solving the Radius of Trust Problem,” American Sociological Review, 76: 786–807.Google Scholar
Dohmen, T., Falk, A. and Sunde, U. (2011), “The Intergenerational Transmission of Risk and Trust Attitudes,” Review of Economic Studies, 79: 645–677.Google Scholar
Eicher, T. S. and Leukert, A. (2009), “Institutions and Economic Performance: Endogeneity and Parameter Heterogeneity,” Journal of Money, Credit and Banking, 41: 197–219.Google Scholar
Fehr, E. (2009), “On the Economics and Biology of Trust,” Journal of the European Economic Association, 7: 235–266.Google Scholar
Fehr, E., Fischbacher, U., von Rosenbladt, B., Schupp, J. and Wagner, G. (2003), “A Nationwide Laboratory Examining Trust and Trustworthiness by Integrating Behavioral Experiments into Representative Surveys,” CEPR Discussion Paper, 3858.Google Scholar
Giacomelli, S. and Tonello, M. (2015), “Measuring the Performance of Local Governments: Evidence from Mystery Calls,” Temi di discussione,, no. 292.Google Scholar
Giordano, R. and Tommasino, P. (2013), “Public-Sector Efficiency and Political Culture,” FinanzArchiv, 69: 289–316.Google Scholar
Glaeser, E. L., Laibson, D. I., Scheinkman, J. A. and Soutter, C. L. (2000), “Measuring Trust,” Quarterly Journal of Economics, 115: 811–846.Google Scholar
Golden, M. and Picci, L. (2005), “Proposal for a New Measure of Corruption, Illustrated with Italian Data,” Economics and Politics, 12: 37–75.Google Scholar
Greif, A. (1994), “Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies,” Journal of Political Economy, 102: 912–951.Google Scholar
Growiec, K. and Growiec, J. (2014), “Trusting Only Whom You Know, Knowing Only Whom You Trust: The Joint Impact of Social Capital and Trust on Happiness in CEE Countries,” Journal of Happiness Studies, 15: 1015–1040.Google Scholar
Guiso, L. (2012), “Trust and Insurance Markets,” EIEF Working paper, 07.Google Scholar
Guiso, L., Sapienza, P. and Zingales, L. (2008), “Social Capital as a Good Culture,” Journal of the European Economic Association, 6: 295–320.Google Scholar
Guiso, L., Sapienza, P. and Zingales, L. (2008), “Trusting the Stock Market,” Journal of Finance, 63: 2557–2600.Google Scholar
Holm, H. J. and Danielson, A. (2005), “Tropic Trust versus Nordic Trust: Experimental Evidence from Tanzania to Sweden,” Economic Journal, 115: 505–532.Google Scholar
Hudson, J. (2006), “Institutional Trust and Subjective Well-being across the EU,” Kyklos, 59: 43–62.Google Scholar
Hupcey, J. E. and Miller, J. (2006), “Community Dwelling Adults Perception of Interpersonal Trust vs. Trust in Health Care Providers,” Journal of Clinical Nursing, 15: 1132–1139.Google Scholar
Knack, S. and Keefer, P. (1997), “Does Social Capital Have an Economic Payoff? A Cross Country Investigation,” Quarterly Journal of Economics, 112: 1251–1288.Google Scholar
Knack, S. and Zak, P. (2002), “Building Trust: Public Policy, Interpersonal Trust and Economic Development,” Supreme Court Economic Review, 10: 91–107.Google Scholar
Mayer, R. C., Davis, J. H. and Schoorman, F. D. (1995), “An Integrative Model of Organizational Trust,” Academy of Management Review, 20: 709–734.Google Scholar
Mishler, W. and Rose, R. (1997), “Trust, Distrust and Skeptisism: Popular Evaluations of Civil and Political Institutions in Post-Communist Societies,” Journal of Politics, 59: 418–451.Google Scholar
Mishler, W. and Rose, R. (2001), “What are the Origins of Politicla Trust? Testing Institutional and Cultural Theories in Post-Communist Countries,” Comparative Politicla Studies, 34: 30–62.Google Scholar
Moschion, J. and Tabasso, D. (2014), “Trust of Second-generation Immigrants: Intergenerational Transmission of Cultural Assimilation?,” IZA Journal of Migration, 3: 1–30.Google Scholar
Moulton, B. (1990), “An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit,” Review of Economics and Statistics, 72: 334–338.Google Scholar
Muller, E. and Seligson, M. (1994), “Civic Culture and Democracy: The Question of Causal Relationships,” American Political Science Review, 88: 635–652.Google Scholar
Newton, K. (1999), “Social and Political Trust in Established Democracies,” in Norris, P. (ed.) Critical Citizens: Global Support for Democratic Governance, Oxford: Oxford University Press.Google Scholar
Nunn, N. and Wantchekon, L. (2011), “The Slave Trade and the Origins of Mistrust in Africa,” American Economic Review, 101: 3221–3252.Google Scholar
OECD (2008), Handbook on Constructing Composite Indicators: Methodology and User Guide, Paris: Organisation for Co-operation and Development.Google Scholar
Paxton, P. (1999), “Is social capital declining in the United States? A Multiple Indicator Assessment,” American Journal of Sociology, 105: 88–127.Google Scholar
Putnam, R. D. (1993), Making Democracy Work, Princeton: Princeton University Press.Google Scholar
Putnam, R. D. (2000), Bowling Alone: The Collapse and Revival of American Community, New York: Simon & Schuster.Google Scholar
Robinson, R. V. and Jackson, E. F. (2001), “Is Trust in Others declining in America? An Age–Period–Cohort Analysis,” Social Science Research, 30: 117–145.Google Scholar
Rothstein, B. and Stolle, D. (2008), “The State and Social Capital: An Institutional Theory of Generalized Trust,” Comparative Politics, 40: 441–59.Google Scholar
Sutter, M. and Kocher, M. (2006), “Trust, Democracy and Governance: Can Government Policies Influence Generalized Trust?” In Hooghe, M. and Stolle, D. (eds) Generating Social Capital: Civic Society and Institutions in Comprative Perspective, New York: Palgrave Macmillan.Google Scholar
Tabellini, G. (2010), “Culture and Institutions: Economic Development in the Regions of Europe,” Journal of the European Economic Association, 8: 677–716.Google Scholar
Twenge, J. M., Campbell, W. K. and Carter, N. T. (2014), “Declines in Trust in Others and Confidence in Institutions among American Adults and Late Adolescents,” Psychological Science, 25: 1914–1923.Google Scholar
Uslaner, E. (2002), The Moral Foundation of Trust,, Cambridge: Cambridge University Press.Google Scholar
Uslaner, E. (2003), “Trust, Democracy and Governance: Can Government Policies Influence Generalized Trust?” In Hooghe, M. and Stolle, D. (eds) Generating Social Capital: Civic Society and Institutions in Comparative Perspective, New York: Palgrave Macmillan.Google Scholar
Uslaner, E. M. (2015), “Measuring Generalized Trust: In Defense of the ‘Standard’ Question,” in Lyon, F., Moellering, G., Sanders, M. and Hatzakis, T. (eds) Handbook of Research Methods on Trust, London: Edward Elgar.Google Scholar
Van de Walle, S. and Bouckaert, G. (2003), “Public Service Performance and Trust in Government: the Problem of Causality,” International Journal of Public Administration, 29: 891–913.Google Scholar
Zak, P. and Knack, S. (2001), “Trust and Growth,” Economic Journal, 111: 291–321.Google Scholar
Supplementary material: File

Camussi and Mancini supplementary material

Camussi and Mancini supplementary material 1

Download Camussi and Mancini supplementary material(File)
File 83.6 KB