We employ Eurobarometer micro-level data on trust in institutions, in order to explore its determinants, considering socio-demographic characteristics, and macroeconomic indicators. The main contribution of our analysis is the investigation of the potential impact of sovereign credit rating episodes and the adoption of bail-out programmes. We find that trust in institutions is substantially eroded in countries that experience downgrade episodes and participate in fiscal adjustment programs while it is significantly strengthened following credit rating upgrades.
Bibliographical noteThis is the peer reviewed version of the following article: Drakos, K, Kallandranis, C & Karidis, S 2019, 'Determinants of Trust in Institutions in Times of Crisis: Survey-based evidence from the European Union' Journal of Common Market Studies, vol. 57, no. 6, pp. 1228-1246., which has been published in final form at https://onlinelibrary.wiley.com/doi/full/10.1111/jcms.12884. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
- European Central Bank
- European Parliament
- EU Commission
- National Government
- Probit Model
Drakos, K., Kallandranis, C., & Karidis, S. (2019). Determinants of Trust in Institutions in Times of Crisis: Survey-based evidence from the European Union. Journal of Common Market Studies, 57(6), 1228-1246. https://doi.org/10.1111/jcms.12884