[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/sae/eeupol/v23y2022i2p212-235.html
   My bibliography  Save this article

The cultural origins of institutional trust: The case of the European Central Bank

Author

Listed:
  • Siria Angino
  • Federico M Ferrara
  • Stefania Secola
Abstract
Does culture have a causal effect on institutional trust? We answer this question by assessing the non-economic determinants of public trust in the European Central Bank. To analyse institutional trust, we employ a novel dataset of citizen perceptions and knowledge about the European Central Bank. Cultural traits are measured by indicators of social trust at the level of Euro area sub-national regions. We show that individuals living in regions with lower social trust systematically exhibit less trust in the European Central Bank. An instrumental variable approach based on historical variables of education and political institutions supports a causal interpretation of our findings. These results are robust across different model specifications and measures of trust.

Suggested Citation

  • Siria Angino & Federico M Ferrara & Stefania Secola, 2022. "The cultural origins of institutional trust: The case of the European Central Bank," European Union Politics, , vol. 23(2), pages 212-235, June.
    • Handle: RePEc:sae:eeupol:v:23:y:2022:i:2:p:212-235
    DOI: 10.1177/14651165211048325
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/14651165211048325
    Download Restriction: no
    File URL: https://libkey.io/10.1177/14651165211048325?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Etienne Farvaque & Muhammad Azmat Hayat & Alexander Mihailov, 2017. "Who Supports the ECB? Evidence from Eurobarometer Survey Data," The World Economy, Wiley Blackwell, vol. 40(4), pages 654-677, April.
    2. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
    3. Betsey Stevenson & Justin Wolfers, 2011. "Trust in Public Institutions over the Business Cycle," American Economic Review, American Economic Association, vol. 101(3), pages 281-287, May.
    4. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    5. Hakhverdian, Armen & Mayne, Quinton, 2012. "Institutional Trust, Education, and Corruption: A Micro-Macro Interactive Approach," Scholarly Articles 9639965, Harvard Kennedy School of Government.
    6. Gianmarco Daniele & Andrea F.M. Martinangeli & Francesco Passarelli & Willem Sas & Lisa Windsteiger, 2020. "Wind of Change? Experimental Survey Evidence on the COVID-19 Shock and Socio-Political Attitudes in Europe," Working Papers tax-mpg-rps-2020-10, Max Planck Institute for Tax Law and Public Finance.
    7. Brück, Tilman & Ferguson, Neil T.N. & Justino, Patricia & Stojetz, Wolfgang, 2020. "Trust in the Time of Corona," IZA Discussion Papers 13386, Institute of Labor Economics (IZA).
    8. Barry Eichengreen & Orkun Saka & Cevat Giray Aksoy, 2024. "The Political Scar of Epidemics," The Economic Journal, Royal Economic Society, vol. 134(660), pages 1683-1700.
    9. Hayo, Bernd & Neuenkirch, Edith, 2014. "The German public and its trust in the ECB: The role of knowledge and information search," Journal of International Money and Finance, Elsevier, vol. 47(C), pages 286-303.
    10. Michael M. Bechtel & Jens Hainmueller & Yotam Margalit, 2014. "Preferences for International Redistribution: The Divide over the Eurozone Bailouts," American Journal of Political Science, John Wiley & Sons, vol. 58(4), pages 835-856, October.
    11. Dimitris Christelis & Dimitris Georgarakos & Tullio Jappelli & Maarten van Rooij, 2020. "Trust in the Central Bank and Inflation Expectations," International Journal of Central Banking, International Journal of Central Banking, vol. 16(6), pages 1-37, December.
    12. Theresa Kuhn & Francesco Nicoli, 2020. "Collective Identities and the Integration of Core State Powers: Introduction to the Special Issue," Journal of Common Market Studies, Wiley Blackwell, vol. 58(1), pages 3-20, January.
    13. Beugelsdijk, Sjoerd & van Schaik, Ton, 2005. "Social capital and growth in European regions: an empirical test," European Journal of Political Economy, Elsevier, vol. 21(2), pages 301-324, June.
    14. Hooghe, Liesbet & Marks, Gary, 2009. "A Postfunctionalist Theory of European Integration: From Permissive Consensus to Constraining Dissensus," British Journal of Political Science, Cambridge University Press, vol. 39(1), pages 1-23, January.
    15. Arnstein Aassve & Guido Alfani & Francesco Gandolfi & Marco Le Moglie, 2021. "Epidemics and trust: The case of the Spanish Flu," Health Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 840-857, April.
    16. repec:bla:jcmkts:v:48:y:2010:i::p:1261-1281 is not listed on IDEAS
    17. Karl Kaltenthaler & Christopher J. Anderson & William J. Miller, 2010. "Accountability and Independent Central Banks: Europeans and Distrust of the European Central Bank," Journal of Common Market Studies, Wiley Blackwell, vol. 48(5), pages 1261-1281, November.
    18. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "The Role of Social Capital in Financial Development," American Economic Review, American Economic Association, vol. 94(3), pages 526-556, June.
    19. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, June.
    20. Benno Torgler, 2008. "Trust in international organizations: An empirical investigation focusing on the United Nations," The Review of International Organizations, Springer, vol. 3(1), pages 65-93, March.
    21. Dirk Bursian & Sven Fürth, 2015. "Trust Me! I am a European Central Banker," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(8), pages 1503-1530, December.
    22. Inglehart, Ronald F. & Norris, Pippa, 2016. "Trump, Brexit, and the Rise of Populism: Economic Have-Nots and Cultural Backlash," Working Paper Series 16-026, Harvard University, John F. Kennedy School of Government.
    23. Fischer, Justina AV & Hahn, Volker, 2008. "Determinants of Trust in the European Central Bank," SSE/EFI Working Paper Series in Economics and Finance 695, Stockholm School of Economics.
    24. Hans-Werner Sinn & Timo Wollmershäuser, 2012. "Target loans, current account balances and capital flows: the ECB’s rescue facility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 468-508, August.
    25. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    26. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2008. "Trusting the Stock Market," Journal of Finance, American Finance Association, vol. 63(6), pages 2557-2600, December.
    27. Castellani, Marco, 2019. "Does culture matter for the economic performance of countries? An overview of the literature," Journal of Policy Modeling, Elsevier, vol. 41(4), pages 700-717.
    28. Adriel Jost, 2018. "Cultural Differences in Monetary Policy Preferences," Working Papers 2018-02, Swiss National Bank.
    29. John Hudson, 2006. "Institutional Trust and Subjective Well‐Being across the EU," Kyklos, Wiley Blackwell, vol. 59(1), pages 43-62, February.
    30. Chase Foster & Jeffry Frieden, 2017. "Crisis of trust: Socio-economic determinants of Europeans’ confidence in government," European Union Politics, , vol. 18(4), pages 511-535, December.
    31. Felix Roth & Lars Jonung & Felicitas Nowak-Lehmann D., 2022. "Crisis and Public Support for the Euro, 1990–2014," Contributions to Economics, in: Public Support for the Euro, chapter 0, pages 55-91, Springer.
    32. Michael Ehrmann & Michel Soudan & Livio Stracca, 2013. "Explaining European Union Citizens’ Trust in the European Central Bank in Normal and Crisis Times," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(3), pages 781-807, July.
    33. repec:zbw:bofitp:2020_014 is not listed on IDEAS
    34. Felix Roth, 2022. "The Effect of the Financial Crisis on Systemic Trust," Contributions to Economics, in: Public Support for the Euro, chapter 0, pages 219-229, Springer.
    35. Lisa Maria Dellmuth & Jonas Tallberg, 2020. "Why national and international legitimacy beliefs are linked: Social trust as an antecedent factor," The Review of International Organizations, Springer, vol. 15(2), pages 311-337, April.
    36. Rathbun, Brian C., 2011. "Before Hegemony: Generalized Trust and the Creation and Design of International Security Organizations," International Organization, Cambridge University Press, vol. 65(2), pages 243-273, April.
    37. Jacob M. Montgomery & Brendan Nyhan & Michelle Torres, 2018. "How Conditioning on Posttreatment Variables Can Ruin Your Experiment and What to Do about It," American Journal of Political Science, John Wiley & Sons, vol. 62(3), pages 760-775, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alan S. Blinder & Michael Ehrmann & Jakob de Haan & David-Jan Jansen, 2024. "Central Bank Communication with the General Public: Promise or False Hope?," Journal of Economic Literature, American Economic Association, vol. 62(2), pages 425-457, June.
    2. Niţoi, Mihai & Pochea, Maria-Miruna, 2024. "Trust in the central bank, financial literacy, and personal beliefs," Journal of International Money and Finance, Elsevier, vol. 143(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Angino, Siria & Secola, Stefania, 2022. "Instinctive versus reflective trust in the European Central Bank," Working Paper Series 2660, European Central Bank.
    2. Dimitris Christelis & Dimitris Georgarakos & Tullio Jappelli & Maarten van Rooij, 2020. "Trust in the Central Bank and Inflation Expectations," International Journal of Central Banking, International Journal of Central Banking, vol. 16(6), pages 1-37, December.
    3. Dimitris Christelis & Dimitris Georgarakos & Tullio Jappelli & Maarten van Rooij, 2020. "Trust in the Central Bank and Inflation Expectations," International Journal of Central Banking, International Journal of Central Banking, vol. 16(6), pages 1-37, December.
    4. Hwang, In Do & Lustenberger, Thomas & Rossi, Enzo, 2021. "Does communication influence executives’ opinion of central bank policy?☆," Journal of International Money and Finance, Elsevier, vol. 115(C).
    5. Hayo, Bernd & Neuenkirch, Edith, 2014. "The German public and its trust in the ECB: The role of knowledge and information search," Journal of International Money and Finance, Elsevier, vol. 47(C), pages 286-303.
    6. Brouwer, Nils & de Haan, Jakob, 2022. "Trust in the ECB: Drivers and consequences," European Journal of Political Economy, Elsevier, vol. 74(C).
    7. Jordaan, Jacob A. & Dima, Bogdan & Goleț, Ionuț, 2016. "Do societal values influence financial development? New evidence on the effects of post materialism and institutions on stock markets," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 197-216.
    8. Hayo, Bernd & Méon, Pierre-Guillaume, 2024. "Preaching to the agnostic: Inflation reporting can increase trust in the central bank but only among people with weak priors," Journal of International Money and Finance, Elsevier, vol. 142(C).
    9. Popova, Olga & See, Sarah Grace & Nikolova, Milena & Otrachshenko, Vladimir, 2023. "The Societal Costs of Inflation and Unemployment," IZA Discussion Papers 16541, Institute of Labor Economics (IZA).
    10. Jacob A. Jordaan & Bogdan Dima, 2020. "Post Materialism and Comparative Economic Development: Do Institutions Act as Transmission Channel?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(2), pages 441-472, April.
    11. Bernd Hayo & Florian Neumeier, 2021. "Explaining central bank trust in an inflation-targeting country: the case of the Reserve Bank of New Zealand," Oxford Economic Papers, Oxford University Press, vol. 73(1), pages 27-48.
    12. Mehmet Fatih Ekinci & Şebnem Kalemli-Özcan & Bent E. Sørensen, 2009. "Financial Integration within EU Countries: The Role of Institutions, Confidence and Trust," NBER Chapters, in: NBER International Seminar on Macroeconomics 2007, pages 325-391, National Bureau of Economic Research, Inc.
    13. Mellina, Sathya & Schmidt, Tobias, 2018. "The role of central bank knowledge and trust for the public's inflation expectations," Discussion Papers 32/2018, Deutsche Bundesbank.
    14. Stefano Carattini & Matthias Roesti, 2020. "Trust, Happiness, and Pro-Social Behavior," CESifo Working Paper Series 8562, CESifo.
    15. Niţoi, Mihai & Pochea, Maria-Miruna, 2024. "Trust in the central bank, financial literacy, and personal beliefs," Journal of International Money and Finance, Elsevier, vol. 143(C).
    16. Soto-Oñate, David & Torrens, Gustavo, 2023. "Institutional-cultural coherence and economic development: The case of the Spanish regions," Journal of Comparative Economics, Elsevier, vol. 51(1), pages 41-89.
    17. Cline, Brandon N. & Williamson, Claudia R., 2016. "Trust and the regulation of corporate self-dealing," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 572-590.
    18. Carin van der Cruijsen & Anna Samarina, 2021. "Trust in the ECB in turbulent times," Working Papers 722, DNB.
    19. Alan S. Blinder & Michael Ehrmann & Jakob de Haan & David-Jan Jansen, 2024. "Central Bank Communication with the General Public: Promise or False Hope?," Journal of Economic Literature, American Economic Association, vol. 62(2), pages 425-457, June.
    20. L. Bottazzi & M. Da Rin & T. Hellmann, 2007. "The Importance of Trust for Investment: Evidence from Venture Capital," Working Papers 612, Dipartimento Scienze Economiche, Universita' di Bologna.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:eeupol:v:23:y:2022:i:2:p:212-235. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.