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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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    2. Kassahun, Habtamu Tilahun & Swait, Joffre & Jacobsen, Jette Bredahl, 2021. "Distortions in willingness-to-pay for public goods induced by endemic distrust in institutions," Journal of choice modelling, Elsevier, vol. 39(C).
    3. Eiji Yamamura, 2014. "Trust in government and its effect on preferences for income redistribution and perceived tax burden," Economics of Governance, Springer, vol. 15(1), pages 71-100, February.
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    6. Kassahun, Habtamu Tilahun & Jacobsen, Jette Bredahl & Nicholson, Charles F., 2020. "Revisiting money and labor for valuing environmental goods and services in developing countries," Ecological Economics, Elsevier, vol. 177(C).
    7. Kitt, Shelby & Axsen, Jonn & Long, Zoe & Rhodes, Ekaterina, 2021. "The role of trust in citizen acceptance of climate policy: Comparing perceptions of government competence, integrity and value similarity," Ecological Economics, Elsevier, vol. 183(C).
    8. Gylfason, Haukur Freyr & Olafsdottir, Katrin, 2017. "Does Gneezy's cheap talk game measure trust?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 67(C), pages 143-148.
    9. Habtamu Tilahun Kassahun & Bo Jellesmark Thorsen & Joffre Swait & Jette Bredahl Jacobsen, 2020. "Social Cooperation in the Context of Integrated Private and Common Land Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(1), pages 105-136, January.
    10. Keefer, Philip & Scartascini, Carlos & Vlaicu, Razvan, 2022. "Demand-side determinants of public spending allocations: Voter trust, risk and time preferences," Journal of Public Economics, Elsevier, vol. 206(C).
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    12. Yamamura, Eiji, 2014. "Time preference and perceptions about government spending and tax: Smokers’ dependence on government support," MPRA Paper 55659, University Library of Munich, Germany.
    13. Sun, Chuanwang & Yuan, Xiang & Yao, Xin, 2016. "Social acceptance towards the air pollution in China: Evidence from public's willingness to pay for smog mitigation," Energy Policy, Elsevier, vol. 92(C), pages 313-324.
    14. Aweke, Abinet Tilahun & Navrud, Ståle, 2022. "Valuing energy poverty costs: Household welfare loss from electricity blackouts in developing countries," Energy Economics, Elsevier, vol. 109(C).
    15. Pietrostefani, Elisabetta, 2022. "Urban transformations and complex values: insights from Beirut," LSE Research Online Documents on Economics 113897, London School of Economics and Political Science, LSE Library.
    16. Pickhardt, Michael & Prinz, Aloys, 2014. "Behavioral dynamics of tax evasion – A survey," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 1-19.
    17. Roosen, J. & Bieberstein, A. & Blanchemanche, S. & Goddard, E. & Marette, S. & Vandermoere, F., 2015. "Trust and willingness to pay for nanotechnology food," Food Policy, Elsevier, vol. 52(C), pages 75-83.
    18. Haiyang Lu & Ivan T. Kandilov & Rong Zhu, 2022. "Does social integration matter for cohort differences in the political participation of internal migrants in China?," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1555-1573, August.
    19. Malte Oehlmann & Jürgen Meyerhoff, 2017. "Stated preferences towards renewable energy alternatives in Germany – do the consequentiality of the survey and trust in institutions matter?," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 6(1), pages 1-16, January.
    20. Mwoya Byaro & Abel Kinyondo, 2020. "Citizens' Trust in Government and Their Greater Willingness to Pay Taxes in Tanzania: A Case Study of Mtwara, Lindi, and Dar es Salaam Regions," Poverty & Public Policy, John Wiley & Sons, vol. 12(1), pages 73-83, March.
    21. John E. Anderson, 2017. "Trust in Government and Willingness to Pay Taxes in Transition Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(1), pages 1-22, March.
    22. Qianqian Zhou & Yuhui Bao & Yiwei Zhao & Xinyao He & Caiyun Cui & Yong Liu, 2022. "Impacts of Government Credit on Government Performance of Public-Private Partnership Project in China: A WSR System Theory Perspective," Sustainability, MDPI, vol. 14(11), pages 1-18, June.
    23. Kountouris, Yiannis & Nakic, Zoran & Sauer, Johannes, 2015. "Political instability and non-market valuation: Evidence from Croatia," Resource and Energy Economics, Elsevier, vol. 41(C), pages 19-39.

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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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