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American Economic Review Vol. 100 No. 5 2010

Institutions and Behavior: Experimental Evidence on the Effects of Democracy

Pedro Dal Bó1; Andrew Foster2; Louis Putterman2

1 Department of Economics, Brown University, Providence, RI 02912, and NBER. · 2 Department of Economics, Brown University, Providence, RI 02912.

Abstract

A novel experiment is used to show that the effect of a policy on the level of cooperation is greater when it is chosen democratically by the subjects than when it is exogenously imposed. In contrast to the previous literature, our experimental design allows us to control for selection effects (e.g. those who choose the policy may be affected differently by it). Our finding implies that democratic institutions may affect behavior directly in addition to having effects through the choice of policies. Our findings have implications for the generalizability of the results of randomized policy interventions.

DOI
10.1257/aer.100.5.2205
Volume
100
Issue
5
Pages
2205-2229
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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