The Impact of Trust on Reforms


Heinemann, Friedrich ; Tanz, Benjamin


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URL: http://ub-madoc.bib.uni-mannheim.de/2085
URN: urn:nbn:de:bsz:180-madoc-20850
Document Type: Working paper
Year of publication: 2008
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: H11 E60 ,
Subject headings (SWD): Wirtschaftsreform
Keywords (English): Trust , Economic Freedom , Policy Reforms
Abstract: In a constantly changing economic environment a country's ability to undertake institutional reforms is crucial to maintain economic growth and to promote the welfare of its citizens. A wide range of determinants for institutional reforms have been identified. However, the impact of trust on reforms has so far never been addressed. We provide theoretical arguments why trust should influence institutional changes and test the relationship empirically. We find a significant positive relation between trust and reforms with regard to government size, the legal system, and deregulation of private businesses and the labor market. The results in other policy fields are ambiguous.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Heinemann, Friedrich ; Tanz, Benjamin (2008) The Impact of Trust on Reforms. Open Access [Working paper]
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