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The Empire Is Dead, Long Live the Empire! Long-Run Persistence of Trust and Corruption in the Bureaucracy

  • Becker, Sascha O.

    ()

    (University of Warwick)

  • Boeckh, Katrin

    ()

    (Osteuropa-Institut, Regensburg (OEI))

  • Hainz, Christa

    ()

    (Ifo Institute for Economic Research)

  • Woessmann, Ludger

    ()

    (Ifo Institute for Economic Research)

Do empires affect attitudes towards the state long after their demise? We hypothesize that the Habsburg Empire with its localized and well-respected administration increased citizens' trust in local public services. In several Eastern European countries, communities on both sides of the long-gone Habsburg border have been sharing common formal institutions for a century now. Identifying from individuals living within a restricted band around the former border, we find that historical Habsburg affiliation increases current trust and reduces corruption in courts and police. Falsification tests of spuriously moved borders, geographic and pre-existing differences, and interpersonal trust corroborate a genuine Habsburg effect.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5584.

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Length: 57 pages
Date of creation: Mar 2011
Date of revision:
Publication status: forthcoming in: Economic Journal, 2015
Handle: RePEc:iza:izadps:dp5584
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