Regulation and Distrust
type: Dataset
description: In a cross-section of countries, government regulation is strongly negatively correlated with social capital. We document this correlation, and present a model explaining it. In the model, distrust creates public demand for regulation, while regulation in turn discourages social capital accumulation, leading to multiple equilibria. A key implication of the model is that individuals in low trust countries want more government intervention even though the government is corrupt. We test this and other implications of the model using country- and individual-level data on social capital and beliefs about government's role, as well as on changes in beliefs and in trust during the transition from socialism.
issued: 2026-05-05T17:02:03.942921
language: en
modified: 2026-05-05T17:02:03.942925
contact point: Organization
  fn: CCSD
keyword: infoeu-reposemanticspreprint
keyword: jel-k---law-and-economicskk2---regulation-and-business-law
keyword: jel-p---economic-systemspp5---comparative-economic-systems
keyword: preprints-working-papers-
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
landing page: https://sciencespo.hal.science/hal-00972819

Regulation and Distrust
type: Distribution
format: HTML
issued: 2026-05-05T17:02:03.946024
modified: 2026-05-05T17:02:03.936813
access URL: https://sciencespo.hal.science/hal-00972819

test_moissonnage_selune
type: Agent