Annual Review of Economics

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annualreviews.org·annualreviews.org/doi/abs/10.1146/annurev-economics-08021...

Tangentially relevant to AI safety governance discussions around institutional legitimacy and public trust in regulatory bodies; not directly focused on AI but informs thinking on why governance structures succeed or fail.

Metadata

Importance: 28/100journal articleprimary source

Summary

This Annual Review of Economics article examines the economic foundations of trust in institutions, social capital, and political legitimacy, analyzing how these factors influence economic outcomes and governance effectiveness. It synthesizes empirical and theoretical research on why citizens trust or distrust public institutions and the consequences for policy compliance and collective action.

Key Points

•Institutional trust and social capital are key determinants of economic performance and governance quality
•Legitimacy of institutions affects compliance with rules, tax behavior, and cooperation in public goods provision
•Social capital functions as an economic resource that reduces transaction costs and enables collective action
•Trust is shaped by cultural, historical, and institutional factors that vary significantly across societies
•Low institutional trust can create self-reinforcing cycles of poor governance and reduced public cooperation

Cited by 1 page

Page	Type	Quality
AI Trust Cascade Failure	Risk	55.0

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Annual Reviews:

Resource ID: d1d5ef39037c09df | Stable ID: NWIzOTRhOD