View More View Less
  • 1 Péter Pázmány Catholic University and Corvinus University of Budapest
Restricted access

The paper surveys the challenges of researching soft concepts in economics through focusing on trust. Although there is increasing evidence about its importance for macroeconomic outcomes, tensions with the homo oeconomicus model as well as the difficulties of conceptualization and measurement imply significant difficulties for research. The paper argues that comparative economics with its systemic analysis and traditional openness to interdisciplinary approaches is particularly well-suited for resolving these challenges, and it could also provide a contribution to trust research through integrating macro-, meso- and micro-level analysis.

  • Akerlof, G.Shiller, R. (2009): Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism. Princeton, NJ: Princeton University Press.

    • Search Google Scholar
    • Export Citation
  • Alesina, A.Fuchs-Schündeln, N. (2007): Goodbye Lenin (or Not?): The Effect of Communism on People’s Preferences. American Economic Review 97(4): 15071528.

    • Search Google Scholar
    • Export Citation
  • Algan, Y.Cahuc, P. (2010): Inherited Trust and Growth. American Economic Review 100(5): 20602092.

  • Ardagna, S.Caselli, F. (2012): The Political Economy of the Greek Debt Crisis: A Tale of Two Bailouts. LSE Center for Economic Performance Special Paper No. 25.

    • Search Google Scholar
    • Export Citation
  • Arrow, K. (1972): Gifts and Exchanges. Philosophy and Public Affairs 1(4): 343362.

  • Babbie, E. (2015): The Practice of Social Research. 14 th Edition. Boston: Cengage Learning.

  • Bishop, R. (2007): The Philosophy of Social Sciences. London and New York: Continuum.

  • Bjornskov, C. (2007): Determinants of Generalized Trust: A Cross-Country Comparison. Public Choice 130(1): 121.

  • Botsman, R. (2012): The Currency of the New Economy is Trust. TED Talk, https://www.ted.com/talks/rachel_botsman_the_currency_of_the_new_economy_is_trust?language=en, accessed September 22, 2016.

    • Search Google Scholar
    • Export Citation
  • Braithwaite, V. (2009): Defiance in Taxation and Governance: Resisting and Dismissing Authority in a Democracy. Cheltenham and Northhampton, MA: Edward Elgar

    • Search Google Scholar
    • Export Citation
  • Braudel, F. (1949): La Méditerranée et le monde méditerranéen à l’époque de Philippe II. Paris: Arnand Colin.

  • Braudel, F. (2009): History and the Social Sciences: The Longue Durée. Translated by Immanuel Wallerstein. Review 32(2): 171203.

  • Camerer, C.Loewenstein, G. (2004): Behavioral Economics: Past, Present, Future. In: Camere, C.Loewenstein, G.Rabin, M. (eds): Advances in Behavioral Economics. Princeton, NJ: Princeton University Press, pp. 351.

    • Search Google Scholar
    • Export Citation
  • Colander, D.Holt, R.Rosser, B. (2004): The Changing Face of Mainstream Economics. Review of Political Economy 18(4): 485499.

    • Search Google Scholar
    • Export Citation
  • Csaba, L. (2014): Európai közgazdaságtan. [European Economics.] Budapest: Akadémiai Kiadó.

  • DellaVigna, S. (2009): Psychology and Economics: Evidence from the Field. Journal of Economic Literature 47(2): 315372.

  • Djankov, S.Glaeser, E.La Porta, R.Lopez-de-Silanes, F.Shleifer, A. (2003): The New Comparative Economics. Journal of Comparative Economics 31(4): 595619.

    • Search Google Scholar
    • Export Citation
  • Dovey, K. (2009): The Role of Trust in Innovation. The Learning Organization 16(4): 311325.

  • Elster, J. (1996): Rationality and the Emotions. The Economic Journal 106(438): 13861397.

  • Evensky, J. (2011): Adam Smith’s Essentials: On Trust, Faith, and Free Markets. Journal of the History of Economic Thought 33(2): 249267.

    • Search Google Scholar
    • Export Citation
  • European Commission (2016): European Innovation Scoreboard. Available: http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards_en, accessed: September 22, 2016.

    • Search Google Scholar
    • Export Citation
  • Exadaktylos, T.Zahariadis, N. (2012): Policy Implementation and Political Trust: Greece in the Age of Austerity. GreeSE paper: Hellenic Observatory Papers on Greece and Southeast Europe, No. 65.

    • Search Google Scholar
    • Export Citation
  • Fehr, E. (2010): On the Economics and Biology of Trust. Journal of the European Economic Association 7(2–3): 235266.

  • Flyvberg, B. (2006): Five Misunderstandings About Case-Study Research. Qualitative Inquiry 12(2): 219245.

  • Fukuyama, F. (1996): The Social Virtues and the Creation of Prosperity. London: Penguin Books.

  • Fukuyama, F. (2015): Political Order and Political Decay. London: Profile Books.

  • Gambetta, D. (1988a): Foreword. In: Gambetta, D. (ed.): Trust: Making and Breaking Cooperative Relations. Oxford: Basil Blackwell, pp. ixxii.

    • Search Google Scholar
    • Export Citation
  • Gambetta, D. (1988b): Mafia: the Price of Distrust. In: Gambetta, D. (ed.): Trust: Making and Breaking Cooperative Relations. Oxford: Basil Blackwell, pp. 158175.

    • Search Google Scholar
    • Export Citation
  • Giddens, A. (1987): Social Theory and Modern Sociology. Stanford, CA: Stanford University Press.

  • Glaeser, E.Laibson, D.Scheinkman, J.Soutter, C. (2000): Measuring Trust. Quarterly Journal of Economics 115(3): 811846.

    • Search Google Scholar
    • Export Citation
  • Guiso, L.Sapienza, P.Zingales, L. (2006): Does Culture Affect Economic Outcomes? Journal of Economic Perspectives 20(2): 2348.

    • Search Google Scholar
    • Export Citation
  • Győrffy, D. (2013): Institutional Trust and Economic Policy: Lessons from the History of the Euro. Budapest and New York: Central European University Press.

    • Search Google Scholar
    • Export Citation
  • Győrffy, D. (2014): The Role of Expectations in Austerity Cycles: The Political Economy of Crisis Management in Ireland and Greece. Acta Oeconomica 64(4): 481509.

    • Search Google Scholar
    • Export Citation
  • Győrffy, D. (2015): Austerity and Growth in Central and Eastern Europe: Understanding the Link through Contrasting Crisis Management in Hungary and Latvia. Post-Communnist Economies 26(2): 12152.

    • Search Google Scholar
    • Export Citation
  • Haucap, J.Müller, A. (2014): Why are Economists so Different? Nature, Nurture, and Gender Effects in a Simple Trust Game. Düsseldorf Center for Competition Economics Discussion Paper No. 136.

    • Search Google Scholar
    • Export Citation
  • Hámori, B. (1998): Érzelem-gazdaságtan. [Economics of emotions.] Budapest: Kossuth Kiadó.

  • Hámori, B. (2004): Bizalom, jóhírnév és identitás az elektronikus piacokon. [Trust, reputation and identity on electronic markets.] Közgazdasági Szemle 51(9): 832848.

    • Search Google Scholar
    • Export Citation
  • Hardin, R. (2006): Trust. Cambridge: Polity Press.

  • Harsányi, J. (1953): Cardinal Utility in Welfare Economics and the Theory of Risk-Taking. Journal of Political Economy 61(5): 434435.

    • Search Google Scholar
    • Export Citation
  • Horvath, R. (2013): Does Trust Promote Growth? Journal of Comparative Economics 41(3): 777788.

  • Hoskin, G. (2014): Trust: A History. Oxford: Oxford University Press.

  • James, H. (2002): The Trust Paradox: A Survey of Economic Inquiries into the Nature of Trust and Trustworthiness. Journal of Economic Behavior and Organization 47(3): 291307.

    • Search Google Scholar
    • Export Citation
  • Kahneman, D. (2003): Maps of Bounded Rationality: Psychology for Behavioral Economics. The American Economic Review 93(5): 14491475.

  • Kastlunger, B.Lozza, E.Kirchler, E.Schabmann, A. (2013): Powerful Authorities and Trusting Citizens: The Slippery Slope Framework and Tax Compliance in Italy. Journal of Economic Psychology 34: 3645

    • Search Google Scholar
    • Export Citation
  • Kirchgässner, G. (2008): Homo Oeconomicus: The Economic Model of Behavior and Its Application in Economics and Other Social Sciences. New York: Springer.

    • Search Google Scholar
    • Export Citation
  • Knack, S.P. Keefer (1997): Does Social Capital Have an Economic Payoff? A Cross-Country Investigation. Quarterly Journal of Economics 112(4): 12511288.

    • Search Google Scholar
    • Export Citation
  • Kornai, J. (1992): The Socialist System: The Political Economy of Communism. Oxford: Clarendon Press.

  • Kornai, J. (2000): The System Paradigm. In: Schekle, W. (ed.): Paradigms of Social Change: Modernization, Development, Transformation, Evolution. Frankfurt and New York: Campus Verlag, St. Martin’s, pp. 111133.

    • Search Google Scholar
    • Export Citation
  • Kornai, J. (2010): Innovation and Dynamism: Interaction between Systems and Technical Progress. Economics of Transition 18(4): 629670.

    • Search Google Scholar
    • Export Citation
  • Kornai. J.Rose-Ackerman, S. (2004): Building a Trustworthy State in Post-Socialist Transition. Basingstoke and New York: Palgrave Macmillan.

    • Search Google Scholar
    • Export Citation
  • Kornai, J.Rothstein, B.Rose-Ackerman, S. (2004): Creating Social Trust in Post-Socialist Transition. Basingstoke and New York: Palgrave Macmillan.

    • Search Google Scholar
    • Export Citation
  • Kőszegi, B. (2014): Behavioral Contract Theory. Journal of Economic Literature 52(4): 10751118.

  • Kogler, C.Batrancea, L.Nichita, A.Pantya, J.Belianin, A.Kirchler, E. (2013): Trust and Power as Determinants of Tax Compliance: Testing the Assumptions of the Slippery Slope Framework in Austria, Hungary, Romania and Russia. Journal of Economic Psychology 34: 169180.

    • Search Google Scholar
    • Export Citation
  • Krugman, P. (2012): What Greece Means. New York Times 11 March.

  • Kuhn, T. (1970): The Structure of Scientific Revolutions. Chicago: University of Chicago Press.

  • Larson, D. (2004): Distrust: Prudent, if not Always Wise. In: Hardin, R. (ed.): Distrust. New York: Russel Sage Foundation, pp. 3459.

    • Search Google Scholar
    • Export Citation
  • Levi, M. (1998): A State of Trust. In: Braithwaite, V.Levi, M. (eds): Trust and Governance. New York: Russel Sage Foundation, pp. 77101.

    • Search Google Scholar
    • Export Citation
  • Li, P. (2011): The Rigor-Relevance Balance for Engaged Scholarship: New Frame and New Agenda for Trust Research and Beyond. Journal of Trust Research 1(1): 121.

    • Search Google Scholar
    • Export Citation
  • Lombardini-Riipinen, C. (2007): The State of Behavioral Economics in Undergraduate Microeconomics Teaching: A Review of Textbooks. Paper presented at The Economic Science Association 2007. http://www.luiss.it/esa2007/programme/papers/95.pdf, accessed September 22, 2016.

    • Search Google Scholar
    • Export Citation
  • Lyon, F.Möllering, G.Saunders, M. eds (2012a): Handbook of Research Methods on Trust. Cheltenham and Northampton: Edward Elgar.

    • Search Google Scholar
    • Export Citation
  • Lyon, F.Möllering, G.Saunders, M. (2012b): Introduction: The Variety of Methods for the Multi-Faceted Phenomenon of Trust. In: Lyon, F.Möllering, G.Saunders, M. (eds): Handbook of Research Methods on Trust. Cheltenham and Northampton: Edward Elgar, pp. 118.

    • Search Google Scholar
    • Export Citation
  • Markic, O. (2009): Rationality and Emotions in Decision-Making. Interdisciplinary Description of Complex Systems 7(2): 5464.

  • Marwell, G.Ames, R. (1981): Economists Free Ride, Does Anyone Else? Experiments on the Provision of Public Goods. Journal of Public Economics 15(3): 295310.

    • Search Google Scholar
    • Export Citation
  • Miller, A.Mitamura, T. (2003): Are Surveys on Trust Trustworthy? Social Psychology Quarterly 66(1): 6270.

  • Mises, L. von (1949/1998): Human Action: A Treatise on Economics. Auburn, Alabama: Ludwig von Mises Institute.

  • Möllering, G. (2006): Trust: Reason, Routine, Reflexivity. Amsterdam: Elsevier.

  • Möllering, G. (2015): The Practical Wisdom of Trust: An interview with Bart Nooteboom. Journal of Trust Research 5(2): 170183.

  • Nooteboom, B. (2013): Trust and Innovation. In: Bachmann, R.Zaheer, A. (eds): Handbook of Advances in Trust Research. Cheltenham and Northampton: Edward Elgar, pp. 106121.

    • Search Google Scholar
    • Export Citation
  • Ntampoudi, I. (2014): The Eurozone Crisis and the Politics of Blaming: the Cases of Germany and Greece. Political Perspectives 8(2–3): 120.

    • Search Google Scholar
    • Export Citation
  • OECD (2007): Innovation and Growth: Rationale for an Innovation Strategy. Paris: OECD.

  • Offe, C.Preuss, U. (1991): Democratic Institutions and Moral Resources. In Held, D. (ed.): Political Theory. Cambridge: Polity Press.

    • Search Google Scholar
    • Export Citation
  • Parts, E. (2013): The Dynamics and Determinants of Social Capital in the European Union and Neighbouring Countries. Discussions on Estonian Economic Policy: Theory and Practice of Economic Policy in the European Union 2013/1.

    • Search Google Scholar
    • Export Citation
  • Pinotti, P. (2015): The Economic Costs of Organised Crime: Evidence from Southern Italy. Economic Journal 125: F203F232.

  • Popper, K. (1934/1980): The Logic of Scientific Discovery. Boston: Unwin Hyman.

  • Rawls, J. (1999): A Theory of Justice. Revised Edition. Cambridge, MA: The Belknap press of Harvard University Press.

  • Read, C. (1898): Logic, Deductive and Inductive. London: Grant Richards.

  • Rosanvallon, P. (2008): Counter-Democracy: Politics in an Age of Distrust. Cambridge: Cambridge University Press

  • Rose, R. (2005): Giving Direction to Government in Comparative Perspective. In: Aberbach, J.Peterson, M. (eds): Institutions of American Democracy: The Executive Branch. Oxford: Oxford University Press, pp. 7299.

    • Search Google Scholar
    • Export Citation
  • Rothbauer, P. (2008): Triangulation. In: Given, L. (ed.): The SAGE Encyclopedia of Qualitative Research Methods. Thousand Oaks, CA: SAGE.

    • Search Google Scholar
    • Export Citation
  • Rothstein, B. (2011): The Quality of Government: Corruption, Social Trust and Inequality in International Perspective. Chicago: Chicago University Press.

    • Search Google Scholar
    • Export Citation
  • Rothstein, B. (2015): Proposal for an investigation by the Royal Swedish Academy of Sciences of its continued involvement in the awarding of the Sveriges Riksbank’s Prize in Economic Sciences in Memory of Alfred Nobel. http://www.rothstein.dinstudio.se/files/Brev_KVA_ekonomipriset_engelska.pdf, accessed September 22, 2016.

    • Search Google Scholar
    • Export Citation
  • Rothstein, B.Teorell, J. (2008): What is the Quality of Government? A Theory of Impartial Government Institutions. Governance: An International Journal of Policy, Administration and Institutions. 21(2): 165190.

    • Search Google Scholar
    • Export Citation
  • Rousseau, D.Sitkin, S.Burt, R.Camerer, C. (1998): Not So Different after All: A Cross-Discipline View of Trust. Academy of Management Review 25(3): 393404.

    • Search Google Scholar
    • Export Citation
  • Schumpeter, J. (1932): Capitalism, Socialism and Democracy. New York: Harper and Brothers.

  • Seligman, A. (2000): The Problem of Trust. Princeton: Princeton University Press.

  • Shelling, T. (1963): The Strategy of Conflict. Cambridge, MA: Harvard University Press.

  • Sinn, H.-W. (2014): The Euro Trap: On Bursting Bubbles, Budgets, and Beliefs. Oxford: Oxford University Press.

  • Skardon, J. (2011): The Role of Trust in Innovation Networks. Procedia — Social and Behavioral Sciences 26: 8593.

  • Soros, G. (2006): The Age of Fallibility. New York: Public Affairs.

  • Stan, A. (2016): The Future is the Trust Economy. Techcrunch, 24 April. https://techcrunch.com/2016/04/24/the-future-is-the-trust-economy/, accessed September 22, 2016.

    • Search Google Scholar
    • Export Citation
  • Stokey, N. (1995): R&D and Economic Growth. Review of Economic Studies 28(4): 16611707.

  • Svallfors, S. (2010): Policy Feedback, Generational Replacement, and Attitudes to State Intervention: Eastern and Western Germany, 1990–2006. European Political Science Review 2(1): 119135.

    • Search Google Scholar
    • Export Citation
  • Sztompka, P. (1999): Trust — A Socialogical Theory. Cambridge: Cambridge University Press.

  • Thaler, R. (2016): Behavioral Economics: Past, Present, and Future. American Economic Review 106(7): 15771600.

  • Ullmann-Margalit, E. (2004): Trust, Distrust and in between. In: Hardin, R. (ed.): Distrust. New York: Russel Sage Foundation, pp. 6081.

    • Search Google Scholar
    • Export Citation
  • Whiteley, P. (2000): Economic Growth and Social Capital. Political Studies 48(3): 443466.

  • Williamson, O. (1993): Calculativeness, Trust, and Economic Organization. The Journal of Law & Economics 36(1): 453486.

  • Zak, P.Knack, S. (2001): Trust and Growth. Economic Journal 111(470): 295321.

  • Zand, D. (2016): Reflections on Trust and Trust Research: Then and Now. Journal of Trust Research 6(1): 6373.