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  • Author: Niklas Harring, Victor Lapuente
  • Publication Date: 09-2016
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: For many economists government intervention is linked to low levels of interpersonal trust and corruption, while, on the contrary, for many political scientists, government intervention is associ- ated to high trust and low corruption. The goal of this paper is to reconcile these contrasting find ings by distinguishing the differing effects of trust over two alternative types of government intervention: regulation and taxation. Low-trust individuals demand more governmental regulation but less government taxation. We test the hypotheses by focusing on a particular policy – i.e. environmental policy – where governments use different mixes of regulatory and tax mechanisms, and for which we have data on both trust in others (interpersonal trust) and trust in public institutions (in- stitutional trust). The main finding is that those individuals with low trust (both interpersonal and institutional trust) tend to demand, ceteris paribus, more governmental regulation of the environ- ment and, but are less inclined to pay higher taxes to protect the environment. We also find that the effect of institutional trust is stronger than the effect of interpersonal trust, which puts previous studies in a perspective.
  • Topic: Corruption, Government, Regional Cooperation, Regulation, Political structure
  • Political Geography: Global Focus
  • Author: John Goodman
  • Publication Date: 10-2016
  • Content Type: Policy Brief
  • Institution: Independent Institute
  • Abstract: For decades, people have increasingly sought to better manage life’s risks by appealing for help from their government, even when other alternatives would yield better results. Moreover, the growing dependence on government to solve major life problems has taken a heavy toll—higher taxes, greater political polarization, and numerous hidden costs and unintended consequences. Fortunately, we need not resign ourselves to this predicament. Opportunities for better managing life’s risks and reducing government waste are all around us, according to Independent Institute Senior Fellow John C. Goodman.
  • Topic: Government
  • Political Geography: America