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Government Size and Trust

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  • Eiji Yamamura

Abstract

This paper uses individual level data from the Japanese General Social Survey to examine how government size influences generalized trust. After controlling for the endogeneity of government size using instrumental variables, I found: (1) using all samples, government size is not associated with generalized trust, and (2) after splitting the sample into workers and non-workers, government size does not influence generalized trust for non-workers, whereas it significantly reduces generalized trust for workers. This suggests that workers, through their work experience, might have to face greater bureaucratic red tape coming from “larger government,” leading to negative externality effects on relationships of trust in the labor market.

Suggested Citation

  • Eiji Yamamura, 2012. "Government Size and Trust," Review of Social Economy, Taylor & Francis Journals, vol. 70(1), pages 31-56, December.
    • Handle: RePEc:taf:rsocec:v:70:y:2012:i:1:p:31-56
    DOI: 10.1080/00346764.2011.592334
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    1. Sänker en stor stat tilliten?
      by Niclas Berggren in Nonicoclolasos on 2010-09-02 07:54:47

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    Cited by:

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    2. Andreas Bergh & Magnus Henrekson, 2011. "Government Size And Growth: A Survey And Interpretation Of The Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 872-897, December.
    3. Pierre Cahuc & Yann Algan, 2009. "Civic Virtue and Labor Market Institutions," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 111-145, January.
    4. Francois Facchini, 2018. "What Are the Determinants of Public Spending? An Overview of the Literature," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(4), pages 419-439, December.
    5. Facchini, Francois, 2014. "The determinants of public spending: a survey in a methodological perspective," MPRA Paper 53006, University Library of Munich, Germany.
    6. Diana Escandon-Barbosa & David Urbano-Pulido & Andrea Hurtado-Ayala, 2019. "Exploring the Relationship between Formal and Informal Institutions, Social Capital, and Entrepreneurial Activity in Developing and Developed Countries," Sustainability, MDPI, vol. 11(2), pages 1-20, January.
    7. John Garen & J. R. Clark, 2015. "Trust and the Growth of Government," Cato Journal, Cato Journal, Cato Institute, vol. 35(3), pages 549-580, Fall.
    8. de Vries Michiel S & Sobis Iwona, 2018. "Trust in the Local Administration: A Comparative Study between Capitals and Non-Capital Cities in Europe," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 11(1), pages 209-228, June.
    9. repec:spo:wpmain:info:hdl:2441/8812 is not listed on IDEAS
    10. 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.
    11. Eduardo de Sá Fortes Leitão Rodrigues, 2021. "Citizens' Confidence in Government and Inefficient Public Spending. Is there a Trust Trap?," Working Papers REM 2021/0199, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    12. Uchechi Shirley Anaduaka & Vivian Ikwuoma Nnetu & Stephen Ekene Aguegboh & David Iheke Okorie, 2016. "Relative Maxima of the Public Sector: A Comparative Study of Nigeria and Ghana," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(11), pages 575-589, November.
    13. repec:hal:spmain:info:hdl:2441/8812 is not listed on IDEAS

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    More about this item

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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