Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82750
Authors: 
Bengtsson, Mikael
Berggren, Niclas
Jordahl, Henrik
Year of Publication: 
2005
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2005:1
Abstract: 
We conduct an extensive robustness analysis of the relationship between trust and growth for a later time period (the 1990s) and with a bigger sample (63 countries) than previous studies. In addition to robustness tests that focus on model uncertainty, we use Least Trimmed Squares, a robust estimation technique, to identify outliers and investigate how they affect the results. We find that the trust-growth relationship is less robust with respect to empirical specification and to countries in the sample than previously claimed, and that outliers affect the results. Nevertheless trust seems quite important compared with many other growth-regression variables.
Subjects: 
trust
growth
robustness analysis
extreme bounds analysis
social capital
least trimmed squares
outliers
JEL: 
O40
Z13
Document Type: 
Working Paper

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