Yamamura, Eiji (2010): Government size and trust.
Download (611Kb) | Preview
This paper uses individual level data (the Japanese General Social Survey) to examine how government size influences generalized trust. After controlling for the endogeneity of government size using instrumental variables, I found: (1) Using all samples, government size is not associated with generalized trust, and (2) After splitting the sample into workers and non-workers, government size does not influence generalized trust for non-workers whereas it significantly reduces generalized trust for workers. This suggests that workers, through their work experience, might have to face greater bureaucratic red tape coming from “larger government”, leading to negative externality effects on relationships of trust in the labor market.
|Item Type:||MPRA Paper|
|Original Title:||Government size and trust|
|Keywords:||Government size; Generalized trust; Employment.|
|Subjects:||D - Microeconomics > D3 - Distribution > D30 - General
Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z13 - Economic Sociology; Economic Anthropology; Social and Economic Stratification
|Depositing User:||eiji yamamura|
|Date Deposited:||15. Sep 2010 01:20|
|Last Modified:||12. Feb 2013 22:18|
Aghion, P., Algan, Y., Chahuc, P., and Shleifer, A. (2010). “Regulation and distrust. “ Forthcoming in Quarterly Journal of Economics.
Alesina, A., and La Ferrara,E. (2002). “Who trust others?” Journal of Public Economics 85: 207-234.
Algan, Y., and Cahuc, P. (2009). “Civic virtue and labor market institutions.” American Economic Journal: macroeconomics, 1(1): 111-145.
Angelopoulos, K., Pilippopoulos, A., and Tsionas, E. (2008). “Does public sector efficiency matter? Revisiting the relation between fiscal size and economic growth in world sample,” Public Choice 137: 245-278.
Asahi Shimbun. (2004). Minryoku: TODOFUKEN-BETSU MINRYOKU SOKUTEI SHIRYOSHU (CD-ROM edition), Asahi-Newspaper, Tokyo.
Asanuma, B. (1989). “Manufacture-supplier relationships in Japan and the concept of relation specific skill,” Journal of Japanese and International Economics 3: 1-30.
Bansfield,E.C. (1958). The moral basis of a backward society, New York: Free Press.
Beugelsdijk, S., de Groot, H.L.F., and van Schaik. (2004). “Trust and economic growth: a robustness analysis,” Oxford Economic Papers 56: 118-134.
Berggren, N., and Jordahl,H. (2006). „Free to trust: economic freedom and social capital,” Kyklos 59: 141-169.
Bergh, A., and Bjørnskov, C. (2009). “Historical trust levels predict current welfare state design.” Ratio Working Papers, 144.
Bjørnskov, C. (2006). “Determinants of generalized trust: A cross-country comparison.,” Public Choice 130: 1-21.
Bjørnskov, C. (2010). “Combating corruption: On the interplay between institutional quality and social trust.” forthcoming in Journal of Law and Economics.
Bjørnskov, C., Dreher,A, and Fischer, J.A.C.(2007). “The bigger the better? Evidence of the effect of government size on life satisfaction around the world,” Public Choice 130: 267-292.
Bjørnskov, C., Dreher, A, and Fischer, J.A.V.. (2008a). “Cross-country determinants of life satisfaction: exploring different determinants across groups in society,” Social Choice and Welfare 30: 119-173.
Bjørnskov, C., Dreher, A., and Fischer, J.A.V.. (2008b). „On decentralization and life satisfaction,” Economics Letters 99: 147-151.
Buchanan, J.M., and Tullock, G. (1962).The Calculus of Consent: Logical Foundations of Constitutional Democracy. Ann Arbor: University of Michigan Press.
Buchanan, J.M., and Wagner, R.E.. (1977). Democracy in deficit: The political legacy of lord Keynes. New York: Academic Press.
Cassar, A., Crowley,L., and Wydick,B. (2007). “The effect of social capital on group loan repayment: Evidence from field experiments,” Economic Journal 117: F85-F106.
Chan, K.S. (2007). “Trade, social values, and the generalized trust,” Southern Economic Journal 73: 733-753.
Dar, A.A., and Amirkhalkhali,S. (2002). “Government size, factor accumulation, and economic growth: Evidence from OECD countries,” Journal of Policy Modeling 24: 679-692.
Doi, T., and Ihori, T. (2002). “Fiscal reconstruction and local interest group in Japan,” Journal of Japanese and International Economies 16: 492-511.
Doi, T., and Ihori,T. (2009). The public sector in Japan: Past development and future prospects. Cheltenham: Edward Elgar.
Downs, A. (1957). An Economic Theory of Democracy. New York: Harper.
Dworkin, R. (1977). Taking Rights Seriously. London, Duckworth.
Easterly, W., and Rebelo,S. (1993). “Fiscal policy and economic growth: An empirical investigation,” Journal of Monetary Economics 32: 417-438.
Fischer, J.A.V. and Torgler,B. (2006). “The effect of relative income position on social capital,” Economics Bulletin 26 (4): 1-20.
Fölster, S., and Herekson,M. (2001). “Growth effects of government expenditure and taxation in rich countries,” European Economic Review 45: 1501-1520.
Fukuyama, F. (1995). Trust: the social virtues and creation of prosperity. London: Hamish Hamilton.
Glaeser, E.L., Laibson,D., Scheinkman,J.A., and Soutter,C.L. (2000). “Measuring Trust,” Quarterly Journal of Economics 115: 811-846.
Glaeser, E.L., and Saks,R.E. (2006). “Corruption in America,” Journal of Public Economics 90: 1053-1072.
Goel, R.K. and Nelson,M.A. (1998). “Corruption and government size: a disaggregated analysis,” Public Choice 97: 107-120.
Goel, R.K. and Budak,J. (2006). “Corruption in transition economies: effects of government size, country size and economic reforms,” Journal of Economics and Finance 30(2): 240-250.
Greene, W.H. (1997). Econometric Analysis (3 eds), Prentice-Hall: London.
Greif, A. (1993). “Contract enforcebility and economic institutions in early trade: the Maghribi traders’ coalition.” American Economic Review, 83: 525-548.
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: 912-950.
Greif, A. (2002). “Institutions and impersonal exchange: from communal to individual responsibility.” Journal of Institutional and Theoretical Economics, 158; 168-204.
Gustavsson, M., and Jordahl,H. (2008). “Inequality and trust in Sweden: Some inequalities are more harmful than others,” Journal of Public Economics 92: 348-365.
Hayami, Y. (2001). Development economics: From poverty to the wealth of nations. (second edition). New York: Oxford University Press.
Index Corporation. (2006). Chiiki toukei 2006 (CD-ROM edition), Index corporation, Tokyo.
Jiyukokuminsha. (2009). Gendaiyogo no Kiso Chishiki (in Japanese). Tokyo: Jiyukokuminsha.
Kandori, M. (1992). “Social norm and community enforcement.” Review of Economic Studies, 59: 63-80.
Knack, S. and Keefer,P. (1997). “Does social capital have an economic payoff? A cross-country investigation,” Quarterly Journal of Economics 114: 83-116.
Knack, S. (1997).”Groups, growth and trust: Cross-country evidence one the Olson and Putnam hypothesis,” Public Choice 117: 341-355.
Kumlin, S. and Rothstein, B. (2005). “Making and breaking social capital: The impact of welfare state institution.” Comparative Political Studies, 38(4): 339-365.
Lassen, D.D. (2007). “Ethnic divisions, trust, and the size of the informal sector,” Journal of economic behavior and organization,63, 423-438.
Leigh, A. (2006a). “Does equality lead to fraternity?” Economics letters 93: 121-125.
Leigh, A. (2006b). “Trust, inequality, and ethnic heterogeneity,” Economic Record 82: 268-280.
Lind, A.E. & Tyler, T.R. (1988). The Social Psychology of Procedural Justice. New York: Plenum Press.
Mauro, P. (1995). “Corruption and growth,” Quarterly Journal of Economics 110: 681-712.
Mendoza, E.G., Milesi-Ferretti, G.M., and Asea,P. (1997). “On the ineffectiveness of tax policy in altering long-run growth: Harberger’s superneutrality conjecture,” Journal of Public Economics 66: 99-126.
Niskanen, W. A. (1971). Bureaucracy and representative government, Aldine Atherton, Chicago.
Peden, E.G., and Bradley, M.D. (1989). “Government size, productivity, and economic growth: The postwar experience,” Public Choice 61: 229-245.
Putnam, R. (1993). Making democracy work. Civic traditions in modern Italy. Princeton, NJ, Princeton University Press.
Putnam, R. (2000). Bowling Alone: The Collapse and Revival of American Community, A Touchstone Book, New York.
Putnam, R. and Goss, K.A. (2002). Introduction. In R.D. Putnam (Ed.), Democracies in Flux. The Evolution of Social Capital in Contemporary Society. New York: Oxford University Press.
Ramseyer, J.M. and Rosenbluth, F.M. (1997). Japan’s Political Marketplace, Harvard University Press, Cambridge.
Rodrik, D. (1997). Has Globalization Gone too Far? Institute for International Economics, Washington.
Sønderskov, K.M. (2009). “Different goods, different effects: Exploring the effects of generalized social trust in large-N collective action,” Public Choice 140: 145-160.
Statistics Bureau Management and Coordination Agency. (2002).Jigyosho Kigyo Tokei Chosa Hokoku. Tokyo: Statistics Bureau Management and Coordination Agency.
Statistics Bureau of the Ministry of Internal Affairs and Communications. (various year). Zenkoku shohi zhittai chosa. Tokyo: Statistics Bureau of the Ministry of Internal Affairs and Communications.
Tachibanaki, T. (2005). Confronting income inequality in Japan: A comparative analysis of causes, consequences, reform. MIT Press, London.
Thibaut, J. and Worker, L. (1975). Procedural Justice: A psychological analysis. Hillsdale, N.J.: L. Erlbaum Associates.
Tyler, T.R. (1998). Trust and Democratic Governance. In by V Braithwaite & M. Levi, Trust & Governance. New York: Russel Sage Foundation.
Uslaner, E. M. (2002). The Moral Foundations of Trust, Cambridge University Press, New York.
Whiteley, P. (2000). “Economic growth and social capital,” Political Studies 48: 443-466.
Wolfe, A. (1989). Whose Keeper? Social Science and Moral Obligation. Berkley: University of California Press.
Yamagishi, T., and Yamagishi, M. (1994). “Trust and commitment in the United States and Japan,” Motivation and Emotion 18: 129-166.
Yamamura, E., (2008a). “The effects of inequality, fragmentation, and social capital on collective action in a homogeneous society: analyzing responses to the 2005 Japan census,” Journal of Socio Economics 37(5): 2054-2058.
Yamamura, E. (2008b). “Determinants of trust in a racially homogeneous society,” Economics Bulletin 26(1): 1-9.
Yamamura, E, (2009a). “The influence of government size on economic growth and life satisfaction. A case study from Japan,” MPRA Paper 18439.
Yamamura, E. (2009b). “Dynamics of social trust and human capital in the learning process: The case of the Japan garment cluster in the period 1968–2005,” Journal of Economic Behavior & Organization 72: 377-389.
Zak, P.J. and Knack, S. (2001). “Trust and growth,” Economic Journal 111: 295-321.