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Does Democracy Foster Trust?

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dc.creator Rainer, Helmut
dc.creator Siedler, Thomas
dc.date 2006
dc.date.accessioned 2013-10-16T07:00:21Z
dc.date.available 2013-10-16T07:00:21Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18502
dc.identifier ppn:514846186
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18502
dc.description The level of trust inherent in a society is important for a wide range of microeconomic and macroeconomic outcomes. This paper investigates how individuals? attitudes toward social and institutional trust are shaped by the political regime in which they live. The German reunification is a unique natural experiment that allows us to conduct such a study. Using data from the German General Social Survey (ALLBUS) and from the German Socio-Economic Panel Study (SOEP), we obtain two sets of results. On one side, we find that, shortly after reunification, East Germans displayed a significantly less trusting attitude than West Germans. This suggests a negative effect of communism in East Germany versus democracy in West Germany on social and institutional trust. However, the experience of democracy by East Germans since reunification did not serve to increase levels of social trust significantly. In fact, we cannot reject the hypothesis that East Germans, after more than a decade of democracy, have the same levels of social distrust as shortly after the collapse of communism. In trying to understand the underlying causes, we show that the persistence of social distrust in the East can be explained by negative economic outcomes that many East Germans experienced in the post-reunification period. Our main conclusion is that democracy can foster trust in post-communist societies only when citizens? economic outcomes are right.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 609
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject Z13
dc.subject P51
dc.subject ddc:330
dc.subject Social Trust
dc.subject Institutional Trust
dc.subject Political Regimes
dc.title Does Democracy Foster Trust?
dc.type doc-type:workingPaper


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