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

41 Pages Posted: 8 Nov 2012

See all articles by Francisco Campos-Ortiz

Francisco Campos-Ortiz

Bank of Mexico - Economic Research Department

Louis Putterman

Brown University - Department of Economics

T. K. Ahn

Seoul National University - Department of Political Science and International Relations

Loukas Balafoutas

University of Innsbruck

Mongoljin Batsaikhan

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS)

Matthias Sutter

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods; University of Cologne - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: November 7, 2012

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.

Keywords: Property Rights, Theft, Efficiency, Experiment, Socio-Political Factors

JEL Classification: C91, C92, D03, H41, P14

Suggested Citation

Campos-Ortiz, Francisco and Putterman, Louis G. and Ahn, T. K. and Balafoutas, Loukas and Batsaikhan, Mongoljin and Sutter, Matthias, Security of Property as a Public Good: Institutions, Socio-Political Environment and Experimental Behavior in Five Countries (November 7, 2012). Available at SSRN: https://ssrn.com/abstract=2172473 or http://dx.doi.org/10.2139/ssrn.2172473

Francisco Campos-Ortiz (Contact Author)

Bank of Mexico - Economic Research Department ( email )

Av. 5 de Mayo 18
Piso 4
Mexico City, 06059
Mexico

Louis G. Putterman

Brown University - Department of Economics ( email )

Box B
Providence, RI 02912
United States
401-863-3837 (Phone)
401-863-1970 (Fax)

T. K. Ahn

Seoul National University - Department of Political Science and International Relations ( email )

Kwanak-gu
Seoul, 151-742
Korea, Republic of (South Korea)

Loukas Balafoutas

University of Innsbruck ( email )

Universitätsstraße 15
Innsbruck, Innsbruck 6020
Austria

Mongoljin Batsaikhan

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS) ( email )

Washington, DC 20057
United States

Matthias Sutter

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

University of Cologne - Department of Economics

Cologne, 50923
Germany

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