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The illusion of criminal 'order': institutional trust and municipal finances in Mexico

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Listed:
  • Ana Isabel López Garciá
  • Seung-hun Lee
  • Juan P. Figueroa Mansur

Abstract

Do criminal groups which help maintain order strengthen the fiscal contract or weaken it? This paper examines how the presence of organized-crime groups shapes Mexican municipalities' ability to collect revenue, deliver public goods, and earn citizens' trust. Survey data show that residents living in neighbourhoods home to organized crime report lower levels of trust in local government, regardless of whether those groups provide 'order' or engage in extortion and violence.

Suggested Citation

  • Ana Isabel López Garciá & Seung-hun Lee & Juan P. Figueroa Mansur, 2025. "The illusion of criminal 'order': institutional trust and municipal finances in Mexico," WIDER Working Paper Series wp-2025-72, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-72
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    References listed on IDEAS

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    1. Christopher Blattman & Gustavo Duncan & Benjamin Lessing & Santiago Tobón, 2025. "Gang Rule: Understanding and Countering Criminal Governance," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 92(3), pages 1497-1531.
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    3. Corbacho, Ana & Philipp, Julia & Ruiz-Vega, Mauricio, 2015. "Crime and Erosion of Trust: Evidence for Latin America," World Development, Elsevier, vol. 70(C), pages 400-415.
    4. Ernesto Dal Bo & Rafael Di Tella, 2003. "Capture by Threat," Journal of Political Economy, University of Chicago Press, vol. 111(5), pages 1123-1152, October.
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