IDEAS home Printed from https://ideas.repec.org/p/feb/natura/00787.html
   My bibliography  Save this paper

Using Field Experiments to Understand the Impact of Institutions on Economic Growth

Author

Listed:
  • Omar Al-Ubaydli
  • Faith Fatchen
  • John List

Abstract

Field experiments are a useful empirical tool that can be deployed in any sub-discipline - including institutional economics - to enhance the sub-discipline's empirical insights. However, we here argue that there exist fundamental barriers to the use of field experiments in understanding the impact of institutions on economic growth. Despite these obstacles, we present some significant scholarly contributions that merit exposition, while also proposing some future methods for using field experiments within institutional economics. While field experiments may be limited in answering questions in institutional economics with macroeconomic outcomes, there is great potential in employing field experiments to answer micro founded questions.

Suggested Citation

  • Omar Al-Ubaydli & Faith Fatchen & John List, 2024. "Using Field Experiments to Understand the Impact of Institutions on Economic Growth," Natural Field Experiments 00787, The Field Experiments Website.
    • Handle: RePEc:feb:natura:00787
    as

    Download full text from publisher

    File URL: http://s3.amazonaws.com/fieldexperiments-papers2/papers/00787.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Williamson, Oliver E, 1988. " Corporate Finance and Corporate Governance," Journal of Finance, American Finance Association, vol. 43(3), pages 567-591, July.
    2. Blair, Robert A. & Moscoso-Rojas, Manuel & Vargas Castillo, Andrés & Weintraub, Michael, 2022. "Preventing Rebel Resurgence after Civil War: A Field Experiment in Security and Justice Provision in Rural Colombia," American Political Science Review, Cambridge University Press, vol. 116(4), pages 1258-1277, November.
    3. Grossman, Guy & Humphreys, Macartan & Sacramone-Lutz, Gabriella, 2014. "“I wld like u WMP to extend electricity 2 our village†: On Information Technology and Interest Articulation," American Political Science Review, Cambridge University Press, vol. 108(3), pages 688-705, August.
    4. Antonio Fatás & Ilian Mihov, 2013. "Policy Volatility, Institutions, and Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 362-376, May.
    5. repec:cup:apsrev:v:113:y:2019:i:03:p:641-657_00 is not listed on IDEAS
    6. David Clingingsmith & Asim Ijaz Khwaja & Michael Kremer, 2009. "Estimating the Impact of The Hajj: Religion and Tolerance in Islam's Global Gathering," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1133-1170.
    7. Gerber, Alan S. & Huber, Gregory A. & Washington, Ebonya, 2010. "Party Affiliation, Partisanship, and Political Beliefs: A Field Experiment," American Political Science Review, Cambridge University Press, vol. 104(4), pages 720-744, November.
    8. Michael G. Findley & Daniel L. Nielson & J.C. Sharman, 2015. "Causes of Noncompliance with International Law: A Field Experiment on Anonymous Incorporation," American Journal of Political Science, John Wiley & Sons, vol. 59(1), pages 146-161, January.
    9. David Clingingsmith & Asim Ijaz Khwaja & Michael Kremer, 2009. "Estimating the Impact of The Hajj: Religion and Tolerance in Islam's Global Gathering," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1133-1170.
    10. North, Douglass C. & Weingast, Barry R., 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," The Journal of Economic History, Cambridge University Press, vol. 49(4), pages 803-832, December.
    11. Benjamin Marx & Vincent Pons & Tavneet Suri, 2021. "Voter Mobilisation and Trust in Electoral Institutions: Evidence from Kenya," The Economic Journal, Royal Economic Society, vol. 131(638), pages 2585-2612.
    12. Kyriacou, Andreas P., 2016. "Individualism–collectivism, governance and economic development," European Journal of Political Economy, Elsevier, vol. 42(C), pages 91-104.
    13. Olken, Benjamin A., 2010. "Direct Democracy and Local Public Goods: Evidence from a Field Experiment in Indonesia," American Political Science Review, Cambridge University Press, vol. 104(2), pages 243-267, May.
    14. Redzo Mujcic & Andreas Leibbrandt, 2018. "Indirect Reciprocity and Prosocial Behaviour: Evidence from a Natural Field Experiment," Economic Journal, Royal Economic Society, vol. 128(611), pages 1683-1699, June.
    15. Andrew Beath & Fotini Christia & Georgy Egorov & Ruben Enikolopov, 2016. "Electoral Rules and Political Selection: Theory and Evidence from a Field Experiment in Afghanistan," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(3), pages 932-968.
    16. Sousa, Yannick Ferreira De & Munro, Alistair, 2012. "Truck, barter and exchange versus the endowment effect: Virtual field experiments in an online game environment," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 482-493.
    17. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75(2), pages 123-123.
    18. Cavalcanti, Carina & Schläpfer, Felix & Schmid, Bernhard, 2010. "Public participation and willingness to cooperate in common-pool resource management: A field experiment with fishing communities in Brazil," Ecological Economics, Elsevier, vol. 69(3), pages 613-622, January.
    19. Dur, Robert & Vollaard, Ben, 2019. "Salience of law enforcement: A field experiment," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 208-220.
    20. Karim, Sabrina, 2020. "Relational State Building in Areas of Limited Statehood: Experimental Evidence on the Attitudes of the Police," American Political Science Review, Cambridge University Press, vol. 114(2), pages 536-551, May.
    21. Blair, Robert A. & Karim, Sabrina M. & Morse, Benjamin S., 2019. "Establishing the Rule of Law in Weak and War-torn States: Evidence from a Field Experiment with the Liberian National Police," American Political Science Review, Cambridge University Press, vol. 113(3), pages 641-657, August.
    22. Daniel E. Ho & Lisa Larrimore Ouellette, 2020. "Improving Scientific Judgments in Law and Government: A Field Experiment of Patent Peer Review," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 17(2), pages 190-223, June.
    23. Casey, Katherine & Kamara, Abou Bakarr & Meriggi, Niccolo, 2021. "An Experiment in Candidate Selection," CEPR Discussion Papers 15695, C.E.P.R. Discussion Papers.
    24. Subramanian, Arjunan & Kumar, Parmod, 2024. "Property rights, factor allocation and household welfare: Experimental evidence from a land titling program in India," Journal of Development Economics, Elsevier, vol. 167(C).
    25. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    26. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1990. "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1325-1348, December.
    27. Daron Acemoglu & James Robinson, 2010. "The Role of Institutions in Growth and Development," Review of Economics and Institutions, Università di Perugia, vol. 1(2).
    28. Voigt, Stefan & Gutmann, Jerg & Feld, Lars P., 2015. "Economic growth and judicial independence, a dozen years on: Cross-country evidence using an updated Set of indicators," European Journal of Political Economy, Elsevier, vol. 38(C), pages 197-211.
    29. Robert J. Barro, 2003. "Determinants of Economic Growth in a Panel of Countries," Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 231-274, November.
    30. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
    31. repec:cup:judgdm:v:10:y:2015:i:6:p:593-596 is not listed on IDEAS
    32. Steven D. Levitt & John A. List, 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 153-174, Spring.
    33. Katherine Casey & Abou Bakarr Kamara & Niccoló F. Meriggi, 2021. "An Experiment in Candidate Selection," American Economic Review, American Economic Association, vol. 111(5), pages 1575-1612, May.
    34. Davidson, Sinclair & De Filippi, Primavera & Potts, Jason, 2018. "Blockchains and the economic institutions of capitalism," Journal of Institutional Economics, Cambridge University Press, vol. 14(4), pages 639-658, August.
    35. Haim, Dotan & Ravanilla, Nico & Sexton, Renard, 2021. "Sustained Government Engagement Improves Subsequent Pandemic Risk Reporting In Conflict Zones," American Political Science Review, Cambridge University Press, vol. 115(2), pages 717-724, May.
    36. Grabowski, Richard, 2008. "Modes of long-run development: Latin America and East Asia," Journal of Institutional Economics, Cambridge University Press, vol. 4(1), pages 25-50, April.
    37. Blattman, Christopher & Hartman, Alexandra C. & Blair, Robert A., 2014. "How to Promote Order and Property Rights under Weak Rule of Law? An Experiment in Changing Dispute Resolution Behavior through Community Education," American Political Science Review, Cambridge University Press, vol. 108(1), pages 100-120, February.
    38. Edella Schlager & Elinor Ostrom, 1992. "Property-Rights Regimes and Natural Resources: A Conceptual Analysis," Land Economics, University of Wisconsin Press, vol. 68(3), pages 249-262.
    39. Leonardo Bursztyn & Alessandra L. González & David Yanagizawa-Drott, 2020. "Misperceived Social Norms: Women Working Outside the Home in Saudi Arabia," American Economic Review, American Economic Association, vol. 110(10), pages 2997-3029, October.
    40. Erik O. Kimbrough & Vernon L. Smith & Bart J. Wilson, 2008. "Historical Property Rights, Sociality, and the Emergence of Impersonal Exchange in Long-Distance Trade," American Economic Review, American Economic Association, vol. 98(3), pages 1009-1039, June.
    41. Omar Al-Ubaydli & Daniel Houser & John Nye & Maria Pia Paganelli & Xiaofei Sophia Pan, 2013. "The Causal Effect of Market Priming on Trust: An Experimental Investigation Using Randomized Control," PLOS ONE, Public Library of Science, vol. 8(3), pages 1-8, March.
    42. Redzo Mujcic & Andreas Leibbrandt, 2018. "Indirect Reciprocity and Prosocial Behaviour: Evidence from a Natural Field Experiment," Economic Journal, Royal Economic Society, vol. 128(611), pages 1683-1699, June.
    43. Hallsworth, Michael & List, John A. & Metcalfe, Robert D. & Vlaev, Ivo, 2017. "The behavioralist as tax collector: Using natural field experiments to enhance tax compliance," Journal of Public Economics, Elsevier, vol. 148(C), pages 14-31.
    44. Valfort, Marie-Anne, 2020. "Anti-Muslim discrimination in France: Evidence from a field experiment," World Development, Elsevier, vol. 135(C).
    45. John A. List, 2003. "Does Market Experience Eliminate Market Anomalies?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 41-71.
    46. Paul J. Ferraro & Michael K. Price, 2013. "Using Nonpecuniary Strategies to Influence Behavior: Evidence from a Large-Scale Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 64-73, March.
    47. Henrik Jacobsen Kleven & Martin B. Knudsen & Claus Thustrup Kreiner & Søren Pedersen & Emmanuel Saez, 2011. "Unwilling or Unable to Cheat? Evidence From a Tax Audit Experiment in Denmark," Econometrica, Econometric Society, vol. 79(3), pages 651-692, May.
    48. Aberra, Adam & Chemin, Matthieu, 2021. "Does legal representation increase investment? Evidence from a field experiment in Kenya," Journal of Development Economics, Elsevier, vol. 150(C).
    49. Benno Torgler, 2013. "A Field Experiment in Moral Suasion and Tax Compliance Focusing on Underdeclaration and Overdeduction," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 69(4), pages 393-411, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefano DellaVigna, 2009. "Psychology and Economics: Evidence from the Field," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
    2. Eric Floyd & John A. List, 2016. "Using Field Experiments in Accounting and Finance," Journal of Accounting Research, Wiley Blackwell, vol. 54(2), pages 437-475, May.
    3. Tanjim Hossain & John A. List, 2012. "The Behavioralist Visits the Factory: Increasing Productivity Using Simple Framing Manipulations," Management Science, INFORMS, vol. 58(12), pages 2151-2167, December.
    4. Hallsworth, Michael & List, John A. & Metcalfe, Robert D. & Vlaev, Ivo, 2017. "The behavioralist as tax collector: Using natural field experiments to enhance tax compliance," Journal of Public Economics, Elsevier, vol. 148(C), pages 14-31.
    5. Marcelo Bergolo & Rodrigo Ceni & Guillermo Cruces & Matias Giaccobasso & Ricardo Perez-Truglia, 2023. "Tax Audits as Scarecrows: Evidence from a Large-Scale Field Experiment," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 110-153, February.
    6. John List, 2020. "Experimental tests of the endowment effect and the Coase theorem," Natural Field Experiments 00687, The Field Experiments Website.
    7. Carina Cavalcanti & Andreas Leibbrandt, 2017. "A glance into the willingness to reduce overfishing: Field evidence from a fishnet exchange program," Monash Economics Working Papers 09-17, Monash University, Department of Economics.
    8. Sultan Mehmood & Avner Seror, 2020. "Religion, Politics, and Judicial Independence: Theory and Evidence," AMSE Working Papers 2004, Aix-Marseille School of Economics, France.
    9. Dohmen, Thomas, 2014. "Behavioral labor economics: Advances and future directions," Labour Economics, Elsevier, vol. 30(C), pages 71-85.
    10. James Alm & William D. Schulze & Carrie von Bose & Jubo Yan, 2019. "Appeals to Social Norms and Taxpayer Compliance," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 638-666, October.
    11. Vossler, Christian A. & McKee, Michael & Bruner, David M., 2021. "Behavioral effects of tax withholding on tax compliance: Implications for information initiatives," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 301-319.
    12. Yan Chen & Peter Cramton & John A. List & Axel Ockenfels, 2021. "Market Design, Human Behavior, and Management," Management Science, INFORMS, vol. 67(9), pages 5317-5348, September.
    13. Weimann Joachim, 2015. "Die Rolle von Verhaltensökonomik und experimenteller Forschung in Wirtschaftswissenschaft und Politikberatung," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(3), pages 231-252, October.
    14. Werner, Peter & Riedl, Arno, 2018. "The role of experiments for policy design," Research Memorandum 022, Maastricht University, Graduate School of Business and Economics (GSBE).
    15. Brown, Thomas C. & Morrison, Mark D. & Benfield, Jacob A. & Rainbolt, Gretchen Nurse & Bell, Paul A., 2015. "Exchange asymmetry in experimental settings," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 104-116.
    16. James Alm, 2019. "What Motivates Tax Compliance?," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 353-388, April.
    17. Botond Kőszegi & Matthew Rabin, 2006. "A Model of Reference-Dependent Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1133-1165.
    18. Xiaojing Kong, 2008. "Loss Aversion and Rent-Seeking: An Experimental Study," Discussion Papers 2008-13, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    19. Arbel, Yuval & Ben-Shahar, Danny & Gabriel, Stuart, 2014. "Anchoring and housing choice: Results of a natural policy experiment," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 68-83.
    20. Giulia Mascagni, 2018. "From The Lab To The Field: A Review Of Tax Experiments," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 273-301, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:feb:natura:00787. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: David Franks (email available below). General contact details of provider: http://www.fieldexperiments.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.