Campos-Ortiz, Francisco Putterman, Louis Ahn, T. K. Balafoutas, Loukas Batsaikhan, Mongoljin Sutter, Matthias
Year of Publication:
Working Papers, Banco de México 2012-12
We study experimentally the protection of property in five widely distinct countries - Austria, Mexico, Mongolia, South Korea and the United States. Our main results are the correlations between experimental choices with indicators regarding the security of property, trust and the quality of government. We show that subjects from countries with: (1) higher levels of trust or perceptions of safety are more prone to abstain from plundering and devote less resources to protect their property; and (2) high-quality political institutions support collective protection of property through taxation more often. Our results highlight the relevance of socio-political factors in determining countries' success in addressing collective action problems including safeguarding property rights.
Property Rights Efficiency Experiment Socio-Political Factors