Trust and Preferences: Evidence from Survey Data

41 Pages Posted: 3 May 2013

Date Written: April 24, 2013

Abstract

This paper considers the role of preferences in explaining trust. By using the Bank of Italy’s Survey on Household Income and Wealth (SHIW), the paper shows that time preferences and risk preferences are key covariates of self-reported trust. They both predict negatively a measure of generalized trust; however, risk aversion is positively correlated with an index of particularized trusting behaviour (which refers to family and friends). Moreover, the results are robust to using a different data source to gauge the role of social preferences and personality traits. The study highlights that neglecting preferences when analysing the role of trust in explaining socio-economic outcomes might pose serious challenges in terms of omitted variables.

Keywords: trust, preferences, survey data

JEL Classification: D1, D8, Z1

Suggested Citation

Albanese, Giuseppe and de Blasio, Guido and Sestito, Paolo, Trust and Preferences: Evidence from Survey Data (April 24, 2013). Bank of Italy Temi di Discussione (Working Paper) No. 911, Available at SSRN: https://ssrn.com/abstract=2259686 or http://dx.doi.org/10.2139/ssrn.2259686

Giuseppe Albanese

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Guido De Blasio

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Paolo Sestito (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
78
Abstract Views
650
rank
375,424
PlumX Metrics