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How Does Social Trust Lead to Better Governance? An Attempt to Separate Electoral and Bureaucratic Mechanisms

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This paper explores questions related to the association between social trust and governance. In particular, the paper explores whether the trust-governance association is mainly a reflection of political responsiveness to the demands of the electorate or of the supply of honest politicians and bureaucrats. After outlining some simple theory, the findings suggest that the association reflects a causal influence of both types of trust on institutions of economic-judicial governance while electoral institutions are not associated with social trust. Assessed at the sample mean, the value of social trust under high political competition as evaluated by the compensating income variation is substantial.

Original languageEnglish
JournalPublic Choice
Pages (from-to)323-346
Number of pages24
Publication statusPublished - 2010

    Research areas

  • Trust, Governance, Transmission mechanisms

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