Institutional Trust and Subjective Well-Being across the EU

This paper analyzes the impact of institutions upon happiness through their intermediary impact upon individual trust. With respect to trust we present evidence that, although it is endogenous with respect to the performance of the institution, changes in the individual's personal circumstances can impact on all the facets of institutional trust. We further conclude that trust (mistrust) in the European Central Bank, the UN, national government the law and possibly the EU, and hence the performance of these institutions themselves, all impact positively (negatively) on well-being.