The Economic Crisis and its Impact on Trust in Institutions in Transition Countries

27 Pages Posted: 28 Aug 2015

See all articles by John E. Anderson

John E. Anderson

University of Nebraska at Lincoln - Department of Economics; Lincoln Institute of Land Policy

Date Written: June 2, 2015

Abstract

This paper examines citizen trust in social institutions, including government, and the impact of the 2008-2009 global economic crisis in transition countries. Empirical models are estimated that explain how the crisis affected trust in institutions, including the presidency, government/cabinet of ministers, parliament, courts, political parties, armed forces, police, banks and the financial system, foreign investors, NGOs, trade unions, and religious institutions. Beyond these institutions, models are estimated explaining citizen's reported trust in people in general. In addition, models are estimated to explain respondents' desired intensity of income redistribution and their support for a market economy. Data employed in the analyses are from the European Bank for Reconstruction and Development's Life in Transition Survey (LITS), wave one collected in 2006 and wave two collected in 2010. By using these two waves of survey data and a set of control variables, the trust-impact of the economic crisis is identified for each institution examined, and preferences for redistribution and attitudes toward a market economy are modeled.

Keywords: trust in government, institutions, income redistribution, transition economies

JEL Classification: H11, H31, H41

Suggested Citation

Anderson, John E., The Economic Crisis and its Impact on Trust in Institutions in Transition Countries (June 2, 2015). Available at SSRN: https://ssrn.com/abstract=2652265 or http://dx.doi.org/10.2139/ssrn.2652265

John E. Anderson (Contact Author)

University of Nebraska at Lincoln - Department of Economics ( email )

Lincoln, NE 68588-0489
United States
402-472-1190 (Phone)
402-472-9700 (Fax)

Lincoln Institute of Land Policy ( email )

113 Brattle Street
Cambridge, MA 02138-3400
United States

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