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Institutions: Mitigating Mistrust

In: Trust: The Key to Social Cohesion and Growth in Latin America and the Caribbean

Author

Listed:
  • Phillip Keefer

    (Inter-American Development Bank)

  • Carlos Scartascini

    (Inter-American Development Bank)

Abstract

Institutions are the bedrock of social organization, minimizing the consequences of mistrust even in high-trust societies. They permit economic exchange when trust is low and allow citizens to act collectively when otherwise they could not. They are essential to inclusive growth.

Suggested Citation

  • Phillip Keefer & Carlos Scartascini, 2022. "Institutions: Mitigating Mistrust," IDB Publications (Book Chapters), in: Phillip Keefer & Carlos Scartascini (ed.), Trust: The Key to Social Cohesion and Growth in Latin America and the Caribbean, edition 1, chapter 7, pages 169-194, Inter-American Development Bank.
    • Handle: RePEc:idb:idbchp:11771-c7
    DOI: http://dx.doi.org/10.1823
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trust; Political Trust; Regulation; Labor Force; Public Policy; Economy; Civil Servants;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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