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

Larysa Tamilina and Natalya Tamilina

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Social trust; trust formation; formal institutions; action choice; multi-level analysis (search for similar items in EconPapers)
JEL-codes: D20 Z10 Z13 (search for similar items in EconPapers)
Date: 2017-01-01
New Economics Papers: this item is included in nep-soc
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