Railways and Roadways to Trust

Despina Gavresi, Anastasia Litina () and Georgios Tsiachtsiras ()
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Georgios Tsiachtsiras: AQR-IREA University of Barcelona and University of Bath

No 202208, AQR Working Papers from University of Barcelona, Regional Quantitative Analysis Group

Abstract: This paper explores the interplay between the extent of transportation infrastructure and various aspects of trust (interpersonal and political trust). We test our hypothesis by exploiting cross regional variation during the period 2002-2019. We focus on two measures of infrastructure, i.e., the length of railroads and railways in European regions. Interpersonal and political trust variables are derived from individual level data available in nine consecutive rounds of the European Social Survey. We document that individuals who live in regions with extended infrastructure network manifest higher trust both in people and political institutions. To mitigate endogeneity concerns, we extend our analysis to a sample of international and inter-regional immigrants. We further adopt an IV approach, where we use as an instrument the pre-existing Roman roads networks. The results from all three specifications are aligned to those of the benchmark analysis. We explore access to differential levels of trust as one of the underlying mechanisms behind our results. Relying on an expanding literature we hypothesize that the effect of infrastructure on trust operates directly via the degree of exposure to new people and ideas, as well as indirectly, via the effect of infrastructure on the structure of the economy.

Keywords: Motorways; Railroads; Political trust; Interpersonal trust JEL classification: Z10; P48; R10; R40. (search for similar items in EconPapers)
Pages: 51 pages
Date: 2022-10, Revised 2022-10
New Economics Papers: this item is included in nep-his, nep-pol, nep-soc, nep-tre and nep-ure
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http://www.ub.edu/irea/working_papers/2022/202214.pdf (application/pdf)

Related works:
Working Paper: Railways and Roadways to Trust (2022)
Working Paper: Railways and Roadways to Trust (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:aqr:wpaper:202208

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