The Determinants of Trust in the European Central Bank
|Author:||Mgr. Dominika Katuščáková|
|Year:||2015 - summer|
|Leaders:|| prof. Roman Horváth Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||The thesis studies the determinants of trust in the European Central Bank by employing
various indicators. The main objective has been to assess the most significant
determinants of trust and to study the impact of the Great Crisis on trust in the European
First, the socio-demographic and macroeconomic variables have been studied as the
predictors and socio-demographic ones have been confirmed to be more significant. We
have also extended the regressions by two new variables: monetary policy transparency
index and financial stability transparency index. Whereas the monetary policy
transparency index has not been significantly correlated with trust, it has been proved that
the financial stability transparency index has positive impact on the trust in the European
Secondly, we have employed the bias-reduced linearization procedure for computation of
the standard errors in order to account for clustering and serial correlation problems.
After comparison with the robust standard errors, we have concluded that the robust
standard errors are not able to completely deal with the clusters and serial correlation in
Thirdly, it has been proved that the trust in the European Central Bank decreases during
the crisis occurrence.