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The Causal Effect Of Trust


The Causal Effect Of Trust
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The Causal Effect Of Trust


The Causal Effect Of Trust
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Author : Björn Bartling
language : en
Publisher:
Release Date : 2018

The Causal Effect Of Trust written by Björn Bartling and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with categories.


Trust affects almost all human relationships - in families, organizations, markets and politics. However, identifying the conditions under which trust, defined as people's beliefs in the trustworthiness of others, has a causal effect on the efficiency of human interactions has proven to be difficult. We show experimentally and theoretically that trust indeed has a causal effect. The duration of the effect depends, however, on whether initial trust variations are supported by multiple equilibria. We study a repeated principal-agent game with multiple equilibria and document empirically that an efficient equilibrium is selected if principals believe that agents are trustworthy, while players coordinate on an inefficient equilibrium if principals believe that agents are untrustworthy. Yet, if we change the institutional environment such that there is a unique equilibrium, initial variations in trust have short-run effects only. Moreover, if we weaken contract enforcement in the latter environment, exogenous variations in trust do not even have a short-run effect. The institutional environment thus appears to be key for whether trust has causal effects and whether the effects are transient or persistent.



The Causal Effect Of Market Participation On Trust


The Causal Effect Of Market Participation On Trust
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Author : Omar Al-Ubaydli
language : en
Publisher:
Release Date : 2013

The Causal Effect Of Market Participation On Trust written by Omar Al-Ubaydli and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013 with categories.


In randomized control laboratory experiments, we find that those primed to think about markets exhibit more trusting behavior. We randomly and unconsciously prime experimental participants to think about markets and trade. We then ask them to play a trust game involving an anonymous stranger. We compare the behavior of these individuals with that of a group who are not primed to think about anything in particular. Priming for market participation affects positively the beliefs about the trustworthiness of anonymous strangers, increasing trust.



Trust And Time Preference


Trust And Time Preference
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Author : Linas Nasvytis
language : en
Publisher:
Release Date : 2022

Trust And Time Preference written by Linas Nasvytis and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with categories.


Large amounts of evidence suggest that trust levels in a country are an important determinant of its macroeconomic growth. In this paper, we investigate one channel through which trust might support economic performance: through the levels of patience, also known as time preference in the economics literature. Following Gabaix and Laibson (2017), we first argue that time preference can be modelled as optimal Bayesian inference based on noisy signals about the future, so that it is affected by the perceived certainty of future outcomes. Drawing on neuroscience literature, we argue that the mechanism linking trust and patience could be facilitated by the neurotransmitter oxytocin. On the one hand, it is a neural correlate of trusting behavior. On the other, it has an impact on the brain's encoding of prediction error, and could therefore increase the perceived certainty of a neural representation of a future event. The relationship between trust and time preference is tested experimentally using the Trust Game. While the paper does not find a significant effect of trust on time preference or the levels of certainty, it proposes an experimental design that can successfully manipulate people's short-term levels of trust for experimental purposes.



Negative Experiences And Trust


Negative Experiences And Trust
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Author : Paul C. Bauer
language : en
Publisher:
Release Date : 2015

Negative Experiences And Trust written by Paul C. Bauer and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015 with categories.


Generalized trust is praised by many researchers as the foundation of functioning social systems. An ongoing debate concerns the question whether and to what extent experiences impact individuals' generalized trust, as measured with the standard trust survey question. So far, reliable empirical evidence regarding the causal effect of experiences on generalized trust is scarce. Studies either do not directly measure the quality of experiences or use designs that are prone to selection bias. In the present study, we investigate a unique panel data set from Switzerland that contains measures of trust and measures of negative experiences, i.e. victimization. We use change score analysis and 'genetic matching' to investigate the causal effect of victimization on generalized trust and find no substantially strong effect that is consistent across panel data waves.



Trust In Trade


Trust In Trade
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Author : Quynh Nguyen
language : en
Publisher:
Release Date : 2013

Trust In Trade written by Quynh Nguyen and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013 with categories.


While most explanations of individual trade policy preferences center on the re-distributional implications of trade, recent research is particularly interested in the role of non-economic determinants. We join the latter line of work by studying the effect of a fundamental socio-psychological determinant of trade preferences: generalized social trust. The hypothesized causal effect of social trust is tested in a field survey experiment that combines a voluntary contribution game with a survey. The empirical work was carried out in Hanoi, Vietnam. The findings offer robust support for the argument that social trust has a positive causal effect on public support for international trade.



Beliefs And Actions In The Trust Game Creating Instrumental Variables To Estimate The Causal Effect


Beliefs And Actions In The Trust Game Creating Instrumental Variables To Estimate The Causal Effect
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Author : Miguel A. Costa-Gomes
language : de
Publisher:
Release Date : 2010

Beliefs And Actions In The Trust Game Creating Instrumental Variables To Estimate The Causal Effect written by Miguel A. Costa-Gomes and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010 with categories.




The Oxford Handbook Of Social And Political Trust


The Oxford Handbook Of Social And Political Trust
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Author : Eric M. Uslaner
language : en
Publisher: Oxford University Press
Release Date : 2018-01-02

The Oxford Handbook Of Social And Political Trust written by Eric M. Uslaner and has been published by Oxford University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018-01-02 with Political Science categories.


This volume explores the foundations of trust, and whether social and political trust have common roots. Contributions by noted scholars examine how we measure trust, the cultural and social psychological roots of trust, the foundations of political trust, and how trust concerns the law, the economy, elections, international relations, corruption, and cooperation, among myriad societal factors. The rich assortment of essays on these themes addresses questions such as: How does national identity shape trust, and how does trust form in developing countries and in new democracies? Are minority groups less trusting than the dominant group in a society? Do immigrants adapt to the trust levels of their host countries? Does group interaction build trust? Does the welfare state promote trust and, in turn, does trust lead to greater well-being and to better health outcomes? The Oxford Handbook of Social and Political Trust considers these and other questions of critical importance for current scholarly investigations of trust.



Trust And Total Factor Productivity


Trust And Total Factor Productivity
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Author : Conal Smith
language : en
Publisher:
Release Date : 2020

Trust And Total Factor Productivity written by Conal Smith and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with Economics categories.




Social Trust And Economic Growth


Social Trust And Economic Growth
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Author : Christian Bjørnskov
language : en
Publisher:
Release Date : 2017

Social Trust And Economic Growth written by Christian Bjørnskov and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017 with categories.


This chapter provides a selective survey of the literature on the association between social trust and economic growth. The chapter is divided into two main sections. The first section outlines the main theoretical arguments for how social trust could affect the long-run growth rate and economic performance of the economy. These theoretical mechanisms can both be direct or work indirectly through affecting institutions, factor accumulation and the elasticity of substitution. An overview of a set of relevant theoretical mechanisms also reveals that some only affect growth under specific conditions. The second section is devoted to reviewing the evidence of an empirical association. While the literature clearly supports a causal effect of trust on growth, the empirical section as well as the conclusions suggest a number of ways in which the field may move forward.



Solidifying The Causal Role Of Trust In Interpersonal Attraction From Attitude Similarity


Solidifying The Causal Role Of Trust In Interpersonal Attraction From Attitude Similarity
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Author : Ramadhar Singh
language : en
Publisher:
Release Date : 2015

Solidifying The Causal Role Of Trust In Interpersonal Attraction From Attitude Similarity written by Ramadhar Singh and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015 with categories.


Attitude similarity -- a cause of attraction -- and the partner's trustworthiness -- a mediator -- were manipulated at two successive occasions, and trust and attraction were measured. Because the partner's trustworthiness was known at Time 2 only, attitude similarity influenced the initial trust and attraction responses and the final trust, but not the final attraction. This experimental evidence for mediation by trust was further confirmed by a modeling of the final attraction on the two manipulations and the three previously measured responses. Specifically, the initial trust and attraction responses originating from attitude similarity bolstered the corresponding responses to the partner's trustworthiness but the initial attraction did not influence the latter trust (i.e., no reverse-causation). Results solidified the previous evidence for mediation of similarity effects on attraction by trust.