Explaining the Impact of Formal Institutions on Social Trust: A Psychological Approach

Tamilina, Larysa and Tamilina, Natalya (2017): Explaining the Impact of Formal Institutions on Social Trust: A Psychological Approach. Forthcoming in: Journal of Interdisciplinary Economics , Vol. 30(2),

Abstract

By drawing on psychological models of action choice, this study distinguishes between four key factors that determine trust building: (1) knowledge to trust, (2) others-regarding, (3) cognition, and (4) contexts. These four factors are combined into a single analytical framework that is used for establishing channels through which the institutional context impacts social trust formation. Our theoretical and empirical evidence suggests that context is the strongest determinant of trust, with its overall effect being, however, modified by the degree to which the individual’s knowledge of trusting, cognition, and others-regarding are developed. The Programme for the International Assessment of Adult Competencies (PIAAC) data from the year 2012 are utilised for testing our propositions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Social trust, trust formation, formal institutions, action choice, multi-level analysis
• Subjects: D - Microeconomics > D2 - Production and Organizations > D20 - General; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z10 - General; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification

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