Institutions and Behavior: Experimental Evidence on the Effects of Democracy

Author:

Bó Pedro Dal1,Foster Andrew2,Putterman Louis2

Affiliation:

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. (JEL C91, D02, D12, D72)

Publisher

American Economic Association

Subject

Economics and Econometrics

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