Determinants of Trust in Institutions in Times of Crisis: Survey‐Based Evidence from the European Union

19 Pages Posted: 28 May 2020

See all articles by Konstantinos Drakos

Konstantinos Drakos

Athens University of Economics and Business - Department of Accounting and Finance

Christos Kallandranis

Regent's University London

Socrates Karidis

affiliation not provided to SSRN

Date Written: November 2019

Abstract

We employ Eurobarometer micro‐level data on trust in institutions, in order to explore its determinants, considering socio‐demographic characteristics, and macroeconomic indicators. The main contribution of our analysis is the investigation of the potential impact of sovereign credit rating episodes and the adoption of bail‐out programmes. We find that trust in institutions is substantially eroded in countries that experience downgrade episodes and participate in fiscal adjustment programmes while it is significantly strengthened following credit rating upgrades.

Keywords: European Central Bank, European Parliament, EU Commission, national government, trust, Probit model

Suggested Citation

Drakos, Konstantinos and Kallandranis, Christos and Karidis, Socrates, Determinants of Trust in Institutions in Times of Crisis: Survey‐Based Evidence from the European Union (November 2019). JCMS: Journal of Common Market Studies, Vol. 57, Issue 6, pp. 1228-1246, 2019, Available at SSRN: https://ssrn.com/abstract=3606523 or http://dx.doi.org/10.1111/jcms.12884

Konstantinos Drakos (Contact Author)

Athens University of Economics and Business - Department of Accounting and Finance ( email )

76 Patission Street
GR-104 34 Athens
Greece

Christos Kallandranis

Regent's University London ( email )

Inner Circle, Regents Park
London
United Kingdom

Socrates Karidis

affiliation not provided to SSRN

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