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Trust, Happiness, and Pro-Social Behavior

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  • Stefano Carattini
  • Matthias Roesti

Abstract

This paper combines several large-scale surveys with different identification strategies to shed new light on the determinants of cooperative behavior. We provide evidence indicating that the well-being maximizing level of trust is above the income maximizing level. Higher trust is also linked to more cooperative and pro-social behaviors, including the private provision of global public goods such as climate change mitigation. Consistent with “warm glow” theories of pro-social behavior, our results show that individuals may enjoy being more cooperative than what would lead them to maximize their income, which is reflected in higher levels of well-being.

Suggested Citation

  • Stefano Carattini & Matthias Roesti, 2020. "Trust, Happiness, and Pro-Social Behavior," CESifo Working Paper Series 8562, CESifo.
    • Handle: RePEc:ces:ceswps:_8562
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    References listed on IDEAS

    as
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    Cited by:

    1. Jo, Ara & Carattini, Stefano, 2021. "Trust and CO2 emissions: Cooperation on a global scale," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 922-937.

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    More about this item

    Keywords

    cooperation; generalized trust; pro-social behaviour; pro-environmental behavior; well-being;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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