NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Trust in Large Organizations

Rafael La Porta, Florencio Lopez-de-Silane, Andrei Shleifer, Robert W. Vishny

NBER Working Paper No. 5864
Issued in December 1996
NBER Program(s):   CF

Several authors suggest that trust is an important determinant of cooperation between strangers in a society, and therefore of performance of social institutions. We argue that trust should be particularly important for the performance of large organizations. In a cross-section of countries, evidence on government performance, participation in civic and professional societies, importance of large firms, and the performance of social institutions more generally supports this hypothesis. Moreover, trust is lower in countries with dominant hierarchical religions, which may have deterred networks of cooperation trust hold up remarkably well on a cross-section of countries.

download in pdf format
   (548 K)

email paper

A non-technical summary of this paper is available in the August 1997 NBER digest.  You can sign up to receive the NBER Digest by email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5864

Published: American Economic Review, Papers and Proceedings, May 1997. citation courtesy of

Users who downloaded this paper also downloaded* these:
Alesina and La Ferrara w7621 The Determinants of Trust
Sapienza, Zingales, and Guiso w11999 Does Culture Affect Economic Outcomes?
Sapienza, Toldra, and Zingales w13387 Understanding Trust
La Porta, Lopez-de-Silanes, Shleifer, and Vishny w5661 Law and Finance
La Porta, Lopez-de-Silanes, Shleifer, and Vishny w5879 Legal Determinants of External Finance
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us