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Trust and Public Policy: Lessons from the Pandemic

In: Contextualizing the COVID Pandemic in India

Author

Listed:
  • Mausumi Das

    (Delhi School of Economics)

  • Ajit Mishra

    (University of Bath)

Abstract

This paper examines the importance of mutual confidence or trust between a government and its citizens on the effectiveness of public policies. We develop a theoretical framework where the designing of government policies and the concomitant actions of the citizens are meditated by the degree of social trust. We introduce a short-term aggregative health shock—a pandemic—which is novel: its characteristics are not fully known at the onset. This creates scope for government intervention in the form of framing the policy announcement and its information content. We use this framework to examine the relationship between government communication, social trust and compliance. For any given level of trust, we analyse the equilibrium framing of the policy as well as the corresponding response and examine the degree of policy effectiveness as a function of the existing level of trust.

Suggested Citation

  • Mausumi Das & Ajit Mishra, 2023. "Trust and Public Policy: Lessons from the Pandemic," India Studies in Business and Economics, in: Indrani Gupta & Mausumi Das (ed.), Contextualizing the COVID Pandemic in India, chapter 0, pages 297-314, Springer.
    • Handle: RePEc:spr:isbchp:978-981-99-4906-9_14
    DOI: 10.1007/978-981-99-4906-9_14
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    References listed on IDEAS

    as
    1. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1015-1049.
    2. repec:hal:spmain:info:hdl:2441/33o86cn6qp83dot08iir97915s is not listed on IDEAS
    3. Algan, Yann & Cahuc, Pierre, 2014. "Trust, Growth, and Well-Being: New Evidence and Policy Implications," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 2, pages 49-120, Elsevier.
    4. repec:hal:spmain:info:hdl:2441/4km7l02j139aj8hl7kcccmqk9s is not listed on IDEAS
    5. Dearmon, Jacob & Grier, Kevin, 2009. "Trust and development," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 210-220, August.
    6. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, Oxford University Press, vol. 125(3), pages 1015-1049.
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    More about this item

    Keywords

    Trust; Public policy; Pandemic;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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