Market institutions bring tolerance, especially where there is social trust

Niclas Berggren and Therese Nilsson ()

Applied Economics Letters, 2014, vol. 21, issue 17, 1234-1237

Abstract: Tolerant societies seem to function better than nontolerant societies both economically and socially. This makes it worthwhile to identify ways to stimulate tolerance. While previous research indicates that market-oriented formal institutions and policies offer such stimulus, it does not investigate what role cultural factors, like social trust, plays. We find that trust is a catalyst: The more there is, the more positive the effect of economic freedom on tolerance. Formal institutions hence interact with the culture of a society and work better as generators of tolerance in alignment with trust.

Date: 2014
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DOI: 10.1080/13504851.2014.922666

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