This paper investigates how persistent changes in trust caused by the Great Recession have affected how citizens across Europe responded to the next global crisis: the COVID-19 pandemic. We show that increases in mistrust towards institutions caused by individual exposure to the 2007–08 financial crisis led to significant declines in mobility during the initial period of lockdown. We interpret this effect as being consistent with individuals prioritizing their own safety amid perceived breakdowns in the social contract. This result suggests that economic events that lead to changes in trust have lasting legacies by affecting government and citizen responses to future crises.

‘Ask not what your country can do for you’: Legacies of the great recession and the ‘Trust crisis’ / Aghajanian, A., Caeiro, R.M., Egger, E., Justino, P., Lo Bue, M.C.. - In: EUROPEAN JOURNAL OF POLITICAL ECONOMY. - ISSN 0176-2680. - ELETTRONICO. - 95:(2026), pp. 102894.1-102894.14. [Epub ahead of print] [10.1016/j.ejpoleco.2026.102894]

‘Ask not what your country can do for you’: Legacies of the great recession and the ‘Trust crisis’

Maria C. Lo Bue
Co-primo
2026-01-01

Abstract

This paper investigates how persistent changes in trust caused by the Great Recession have affected how citizens across Europe responded to the next global crisis: the COVID-19 pandemic. We show that increases in mistrust towards institutions caused by individual exposure to the 2007–08 financial crisis led to significant declines in mobility during the initial period of lockdown. We interpret this effect as being consistent with individuals prioritizing their own safety amid perceived breakdowns in the social contract. This result suggests that economic events that lead to changes in trust have lasting legacies by affecting government and citizen responses to future crises.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11368/3143358
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