Abstract

This study analyses the impacts of general trust on Self Reported Health (SRH) in China, using data taken from World Value Survey. To circumvent possible reverse causality (or endogeneity/simultaneity) whereby it is SRH that is causing the trust outcome and omitted variables whereby the observed association reflects a correlation of both trust and SRH with some unmeasured characteristic, the paper utilizes instrumental variable design which allows one to interpret the findings as causal. This leads to the conclusion that trust has a negative effect, i.e., it leads to a lower level of SRH in China.

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