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Trust in Large Organizations (Economic Journal)
webCredibility Rating
4/5
High(4)High quality. Established institution or organization with editorial oversight and accountability.
Rating inherited from publication venue: Wiley Online Library
A peer-reviewed economics article on institutional trust and social capital; tangentially relevant to AI governance discussions about public trust in AI institutions and regulatory legitimacy.
Metadata
Importance: 25/100journal articleprimary source
Summary
This Economic Journal article examines the relationship between social capital, institutional trust, and legitimacy in large organizations. It likely analyzes how trust functions at scale and the economic implications of institutional credibility and social norms.
Key Points
- •Explores the economics of trust within and toward large institutions
- •Connects social capital theory to organizational legitimacy and performance
- •Analyzes how institutional trust affects economic coordination and outcomes
- •Examines conditions under which trust in organizations is sustained or eroded
Cited by 1 page
| Page | Type | Quality |
|---|---|---|
| AI Trust Cascade Failure | Risk | 55.0 |
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[The Economic Journal](https://onlinelibrary.wiley.com/journal/14680297 "The Economic Journal homepage")
[Volume 111, Issue 470](https://onlinelibrary.wiley.com/toc/14680297/2001/111/470) pp. 295-321 [](https://onlinelibrary.wiley.com/journal/14680297 "The Economic Journal homepage")
# Trust and Growth
[Paul J. Zak](https://onlinelibrary.wiley.com/authored-by/Zak/Paul+J.),
Paul J. Zak
Claremont Graduate University,
[Search for more papers by this author](https://onlinelibrary.wiley.com/authored-by/Zak/Paul+J.)
[Stephen Knack](https://onlinelibrary.wiley.com/authored-by/Knack/Stephen),
Stephen Knack
The World Bank
[Search for more papers by this author](https://onlinelibrary.wiley.com/authored-by/Knack/Stephen)
[Paul J. Zak](https://onlinelibrary.wiley.com/authored-by/Zak/Paul+J.),
Paul J. Zak
Claremont Graduate University,
[Search for more papers by this author](https://onlinelibrary.wiley.com/authored-by/Zak/Paul+J.)
[Stephen Knack](https://onlinelibrary.wiley.com/authored-by/Knack/Stephen),
Stephen Knack
The World Bank
[Search for more papers by this author](https://onlinelibrary.wiley.com/authored-by/Knack/Stephen)
First published: 23 December 2001
[https://doi.org/10.1111/1468-0297.00609Digital Object Identifier (DOI)](https://doi.org/10.1111/1468-0297.00609)
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Zak, P.J. and Knack, S. (2001), Trust and Growth. The Economic Journal, 111: 295-321. [https://doi.org/10.1111/1468-0297.00609](https://doi.org/10.1111/1468-0297.00609)
[PDF](https://onlinelibrary.wiley.com/doi/epdf/10.1111/1468-0297.00609 "ePDF")
### Abstract
Why does trust vary so substantially across countries? This paper presents a general equilibrium growth model in which heterogeneous agents transact and face a moral hazard problem. Agents may trust those with whom they transact, but they also have the opportunity to invest resources in verifying the truthfulness of claims made by transactors. We characterise the social, economic and institutional environments in which trust will be high, and show that low trust environments reduce the rate of investment. The predictions of the model are examined empirically for a cross-section of countries and have substantial support in the data.
## Citing Literature
[](https://onlinelibrary.wiley.com/toc/14680297/2001/111/470 "View Volume 111, Issue 470")
[Volume111, Issue470](https://onlinelibrary.wiley.com/toc/14680297/2001/111/470 "View Volume 111, Issue 470")
March 2001
Pages 295-321
- [**Related**](https://onlinelibrary.wiley.com/doi/10.1111/1468-0297.00609#pane-pcw-related)
- [**Information**](https://onlinelibrary.wiley.com/doi/10.1111/146
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