Individualistic values, institutional trust, and interventionist attitudes

Abstract

Ever since Max Weber (1930) uncovered the cultural origins of capitalism, a common denominator for explanations of economic development is that "individualistic values" provide a more favourable background for promoting the wealth of nations. This paper investigates the impact of individualist values on personal attitudes towards government intervention, as a potential link of culture and formal institutions. We consider two key components of an "individualistic culture" to be particularly relevant for attitude formation, namely values related to self-direction and self-determination. Results indicate that both elements of individualistic values are associated negatively with interventionist preferences. Interestingly, effects of self-direction values on intervention attitudes are much weaker though, than the effects of a strong belief in self-determination. Moreover, the effects of self-direction on intervention preferences are mitigated through higher trust in state actors and lower confidence in major companies, while that does not appear to be the case for self-determination values. AbstractEver since Max Weber (1930) uncovered the cultural origins of capitalism, a common denominator for explanations of economic development is that 'individualistic values' provide a more favorable background for promoting the wealth of nations. This paper investigates the impact of individualist values on personal attitudes towards government intervention, as a potential link of culture and formal institutions. We consider two key components of an 'individualistic culture' to be particularly relevant for attitude formation, namely values related to self-direction and self-determination. Results indicate that both elements of individualistic values are associated negatively with interventionist preferences. Interestingly, effects of self-direction values on intervention attitudes are much weaker though, than the effects of a strong belief in self-determination. Moreover, the effects of self-direction on intervention preferences are mitigated through higher trust in state actors and lower confidence in major companies, while that does not appear to be the case for self-determination values.

Judicial Independence in the EU A Puzzle

“…These conjectures are supported by empirical cross-country evidence (Aghion et al 2010;Pinotti 2012;Pitlik and Kouba 2015). More recent studies have linked individualism to a reduced demand for regulation (Pitlik and Rode 2017).…”

Are individualistic societies less equal? Evidence from the parasite stress theory of values

“…In other words, only because people want a more equal society does not necessarily mean that they will get one. Instead, the quality of formal institutions can mediate this relationship and recent studies suggest that in countries where people have trust in the public sector, they are far more likely to be willing to pay higher taxes and trust government officials to do the right thing (Dimitrova-Grajzl et al, 2012;Svallfors, 2013;Pitlik and Kouba, 2015;Daniele and Geys, 2015;Pitlik and Rode, 2016).…”

“…When citizens perceive state institutions to be fair, less corrupt, and more efficient, they are far more likely to favor higher taxes and government spending on welfare programs (Dimitrova-Grajzl et al, 2012;Svallfors, 2013;Pitlik and Kouba, 2015;Daniele and Geys, 2015;Pitlik and Rode, 2016). When they trust and care about the wellbeing of their fellow citizens, they will be more inclined to support welfare programs that Fincher, C. L. and Thornhill, R. (2008).…”

“…People in more individualistic cultures are also more likely to tolerate minorities and have higher levels of interpersonal trust and lower levels of corruption (Thornhill and Fincher, 2014;Allik and Realo, 2004), which can further reduce transaction costs and facilitate market exchange leading to higher rates of human and physical capital investment, technological innovation and long-run economic growth (Oyserman et al, 2002;Gorodnichenko and Roland, 2012) and encouraging people to put more effort and get a fairer share of the economic pie (Alesina and Angeletos, 2005). When citizens perceive state institutions to be fair, less corrupt, and more efficient, they are far more likely to tolerate higher taxes and government spending on welfare programs (Dimitrova-Grajzl et al, 2012;Svallfors, 2013;Pitlik and Kouba, 2015;Daniele and Geys, 2015;Pitlik and Rode, 2016). When they trust and care about the wellbeing of their fellow citizens, they will be more inclined to support welfare programs that benefit others.…”

Post Materialism and Comparative Economic Development: Do Institutions Act as Transmission Channel?

“…Furthermore, the feature that post materialists value independence and autonomy may also impact upon institutions. Pitlik and Rode (2017) examine the relationship between individualism and government intervention and find that individualistic traits related to self-determination foster the creation of market friendly institutions. Allik and Realo (2004) and Welzel (2010) take a different approach by examining whether individualism and self-expression are detrimental to civil society.…”