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Trust and institutions: A multilevel analysis

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  • Wang, Lanlan
  • Gordon, Peter

Abstract

In this study, we argue that levels of trust are shaped by formal and informal institutions. We discuss statistical test results that support this view. These utilize World Value Survey results and related data sources to examine the ways that institutions and contextual factors affect individuals’ self-reported trust levels. This investigation is the first, to our knowledge, to take into account micro-unit along with macro-unit characteristics to analyze the nature of contextual effects and does so by applying a multilevel regression approach.

Suggested Citation

  • Wang, Lanlan & Gordon, Peter, 2011. "Trust and institutions: A multilevel analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 583-593.
    • Handle: RePEc:eee:soceco:v:40:y:2011:i:5:p:583-593
    DOI: 10.1016/j.socec.2011.04.015
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    6. In Do Hwang, 2017. "Which Type of Trust Matters?:Interpersonal vs. Institutional vs. Political Trust," Working Papers 2017-15, Economic Research Institute, Bank of Korea.
    7. Lorenzo Frangi & Sebastian Koos & Sinisa Hadziabdic, 2017. "In Unions We Trust! Analysing Confidence in Unions across Europe," British Journal of Industrial Relations, London School of Economics, vol. 55(4), pages 831-858, December.
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    9. Behrooz Hassani-Mahmooei & Brett W. Parris, 2014. "Dynamics of effort allocation and evolution of trust: an agent-based model," Computational and Mathematical Organization Theory, Springer, vol. 20(2), pages 133-154, June.
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    11. Hassani Mahmooei, Behrooz & Parris, Brett, 2012. "Dynamics of effort allocation and evolution of trust: an agent-based model," MPRA Paper 44919, University Library of Munich, Germany.
    12. Ewa Gruszewska, 2014. "Changes In Informal Institutions In Poland And Transition Countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 9(1), pages 39-55, March.
    13. Grosso, Monica & Castaldo, Sandro & Li, Hua (Ariel) & Larivière, Bart, 2020. "What Information Do Shoppers Share? The Effect of Personnel-, Retailer-, and Country-Trust on Willingness to Share Information," Journal of Retailing, Elsevier, vol. 96(4), pages 524-547.
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    16. Ding, Zhujun & Au, Kevin & Chiang, Flora, 2015. "Social trust and angel investors' decisions: A multilevel analysis across nations," Journal of Business Venturing, Elsevier, vol. 30(2), pages 307-321.

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