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Citizens’ trust in government and their willingness-to-pay

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  • Oh, Hyungna
  • Hong, Jong Ho

Abstract

We employ the Hicksian compensating variation and a citizen’s subjective perspective on trustworthiness of government, and draw a positive association between citizens’ trust in government and their willingness-to-pay. Our finding suggests that public projects can be hindered by prevailing distrust toward government.

Suggested Citation

  • Oh, Hyungna & Hong, Jong Ho, 2012. "Citizens’ trust in government and their willingness-to-pay," Economics Letters, Elsevier, vol. 115(3), pages 345-347.
    • Handle: RePEc:eee:ecolet:v:115:y:2012:i:3:p:345-347
    DOI: 10.1016/j.econlet.2011.12.010
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Trust; Credibility; Willingness-to-pay;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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