EconPapers    
Economics at your fingertips  
 

Regulation and Distrust

Pierre Cahuc, Andrei Shleifer, Philippe Aghion and Yann Algan ()

No 14648, Sciences Po publications from Sciences Po

Abstract: In a cross-section of countries, government regulation is strongly negatively correlated with social capital. We document this correlation, and present a model explaining it. In the model, distrust creates public demand for regulation, while regulation in turn discourages social capital accumulation, leading to multiple equilibria. A key implication of the model is that individuals in low trust countries want more government intervention even though the government is corrupt. We test this and other implications of the model using country- and individual-level data on social capital and beliefs about government’s role, as well as on changes in beliefs and in trust during the transition from socialism.

JEL-codes: K2 P5 (search for similar items in EconPapers)
Date: 2009-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://spire.sciencespo.fr/hdl:/2441/8883/resources/w14648.pdf (application/pdf)

Related works:
Journal Article: Regulation and Distrust (2010) Downloads
Working Paper: Regulation and Distrust (2010) Downloads
Working Paper: Regulation and Distrust (2010) Downloads
Working Paper: Regulation and Distrust (2009) Downloads
Working Paper: Regulation and Distrust (2009) Downloads
Working Paper: Regulation and Distrust (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spo:wpmain:info:hdl:2441/8883

Access Statistics for this paper

More papers in Sciences Po publications from Sciences Po Contact information at EDIRC.
Bibliographic data for series maintained by Spire @ Sciences Po Library ().

 
Page updated 2019-02-20
Handle: RePEc:spo:wpmain:info:hdl:2441/8883