Vollan, Björn Zhou, Yexin Landmann, Andreas Hu, Biliang Herrmann-Pillath, Carsten
Year of Publication:
Working Papers in Economics and Statistics 2013-14
There is ample evidence for a "democracy premium". Laws that have been implemented via election lead to a more cooperative behavior compared to a top-down approach. This has been observed using field data and laboratory experiments. We present evidence from Chinese students and workers who participated in public goods experiments and a value survey. We find a premium for top-down rule implementation stemming from people with stronger individual values for obeying authorities. When participants have values for obeying authorities, they even conform to non-preferred rule. Our findings provide strong evidence that the efficiency of political institutions depends on societal norms.
Deterrent effect of legal sanctions expressive law authoritarian norms public goods democratic voting China