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Security of Property as a Public Good: Institutions, Socio-Political Environment and Experimental Behavior in Five Countries

Author

Listed:
  • Campos-Ortiz, Francisco

    () (Bank of Mexico)

  • Putterman, Louis

    () (Brown University)

  • Ahn, T.K.

    () (Seoul National University)

  • Balafoutas, Loukas

    () (University of Innsbruck)

  • Batsaikhan, Mongoljin

    () (Georgetown University)

  • Sutter, Matthias

    () (Max Planck Institute for Research on Collective Goods)

Abstract

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 that the security of property varies with experimental institutions, and that our subject pools exhibit significantly different behaviors that correlate with country-level property security, trust and quality of government. Subjects from countries with higher levels of trust or perceptions of safety are more prone to abstain initially from theft and devote more resources to production, and subjects from countries with higher quality political institutions are more supportive of protecting property through compulsory taxation. This highlights the relevance of socio-political factors in determining countries' success in addressing collective action problems including safeguarding property rights.

Suggested Citation

  • Campos-Ortiz, Francisco & Putterman, Louis & Ahn, T.K. & Balafoutas, Loukas & Batsaikhan, Mongoljin & Sutter, Matthias, 2012. "Security of Property as a Public Good: Institutions, Socio-Political Environment and Experimental Behavior in Five Countries," IZA Discussion Papers 6982, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6982
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    experiment; efficiency; theft; property rights; socio-political factors;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights

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