How Does Education Affect Political Trust?: An Analysis of Moderating Factors

This article aims to understand the correlates of political trust by delving into the multiple interactive effects of education in democratic states throughout the world. It asks whether education raises political trust by increasing the stakes of the citizens in the system and whether education diminishes trust as a result of being abler to evaluate the existence of corruption in a given country. It also taps into how post-materialism as an individual-level factor affects this equation by activating critical judgments toward political institutions. The findings show that, indeed, the effect of education on political trust is very context-dependent. Political trust and education are positively correlated in more meritocratic countries and negatively correlated in the more corrupt ones. Post-material values, combined with educational attainment, tend to lower political trust to a certain extent yet this effect is surpassed by the presence or absence of meritocracy or political corruption. We also find that the effect of education on political trust becomes more pronounced as the level of education increases, with university graduates being the most susceptible to the effects of meritocracy and corruption on their trust levels.

     

Neural Networks: A New Tool for Predicting Thrift Failures*

A neural network model that processes input data consisting of financial ratios is developed to predict the financial health of thrift institutions. The network's ability to discriminate between healthy and failed institutions is compared to a traditional statistical model. The differences and similarities in the two modelling approaches are discussed. The neural network, which uses the same financial data, requires fewer assumptions, achieves a higher degree of prediction accuracy, and is more robust.