Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296359 
Year of Publication: 
2024
Citation: 
[Journal:] Quantitative Economics [ISSN:] 1759-7331 [Volume:] 15 [Issue:] 1 [Year:] 2024 [Pages:] 213-243
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
We propose a novel way of measuring trust in institutions, which draws on the experimental method used to elicit time preferences. Our measure is provided in the meaningful metric of the subjective probability of trustworthiness of the trustee. In a lab-in-the-field setting in the Philippines, we measure trust in two different financial institutions. Additionally, we exploit exogenous variation in the eligibility for a future payment to examine whether a promise fulfilled by the institution increases trust and changes individual financial behavior. We find that eligible individuals significantly increase savings held with the institution.
Subjects: 
Trust
institutions
experiment
time preference
risk preference
savings
JEL: 
C91
D81
D90
O10
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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