Republic of beliefs: An experimental investigation✰

Utteeyo Dasgupta and Fatos Radoniqi

Journal of Economic Behavior & Organization, 2023, vol. 214, issue C, 30-43

Abstract: The success of a country's anti-corruption policy can crucially depend on its citizens’ beliefs about the existing legal environment. We test this key idea due to Basu (2020) using a novel experiment design. Our results suggest that Basu's “Republic of Beliefs” idea provides a critical insight in policy formulation; Merely introducing an anti-corruption law need not be sufficient in pushing the country towards the desired equilibrium, especially in developing countries, where the existing legal enforcement machinery has severe scopes of leakages.

Keywords: Republic of beliefs; Harassment bribery; Tower of legal hierarchy; Experiment (search for similar items in EconPapers)
JEL-codes: C91 D02 K42 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:214:y:2023:i:c:p:30-43

DOI: 10.1016/j.jebo.2023.07.027

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