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Trust, risk and time preferences: evidence from survey data

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The paper shows that time preferences and risk preferences are key covariates of self-reported trust. They both predict negatively a measure of generalized trust; however, risk aversion is positively correlated… Click to show full abstract

The paper shows that time preferences and risk preferences are key covariates of self-reported trust. They both predict negatively a measure of generalized trust; however, risk aversion is positively correlated with an index of particularized trusting behaviour (which refers to the circle of known people).

Keywords: risk; risk time; time preferences; trust risk

Journal Title: International Review of Economics
Year Published: 2017

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