When the State Gives Back: Trust and Trustworthiness after a Land Restitution Program

51 Pages Posted: 18 Jul 2016

See all articles by Francesco Bogliacino

Francesco Bogliacino

National University of Colombia - Department of Economics

Gianluca Grimalda

Kiel Institute for the World Economy; Centre for Global Cooperation Research, University of Duisburg-Essen; Jaume I University

Laura Jiménez

Fondazione Roberto Franceschi

Daniel Reyes Galvis

Open Evidence

Cristiano Codagnone

Università degli studi di Milano, Dipartimento di Scienze Sociali e Politiche; Universitat Oberta de Catalunya, Estudis de Ciències de la Informació i de la Comunicació

Date Written: July 12, 2016

Abstract

Recent research in Economics has sought to understand the effects of exposure to violence on individual preferences, including pro-social behavior. Here, we assess the impact on pro-social behaviour of a governmental program to compensate victims of forced displacement. All our subjects have been officially recognized as victims of a conflict, and, as such, are eligible to apply for restitution of their land within the "Victims' Law" (Ley de Víctimas, Bill 1448/2011). The key independent variable of our analysis is whether a subject has obtained land back within this or similar programs. Our dependent variables are a subject's trust and trustworthiness in unknown persons, as measured in a modified version of a Trust Game. We focus on inter-personal trust and trustworthiness because of their well-documented positive effect on economic development. Our design includes a treatment in which subjects vote on their most preferred outcomes to understand whether forms of consultative democracy can engender higher mutual trust. We find that land restitution significantly raises trustworthiness, while there is no effect on trust. This confirms previous insights that trust and trustworthiness tap into different aspects of pro-sociality. Voting does not improve either trust or trustworthiness. The results are robust to controlling for socio-economic status within regression analysis and to the omitted variable bias.

Keywords: trust, trustworthiness, displacement, reparations

JEL Classification: C93, I38, Q15

Suggested Citation

Bogliacino, Francesco and Grimalda, Gianluca and Jiménez, Laura and Reyes Galvis, Daniel and Codagnone, Cristiano, When the State Gives Back: Trust and Trustworthiness after a Land Restitution Program (July 12, 2016). Available at SSRN: https://ssrn.com/abstract=2808776 or http://dx.doi.org/10.2139/ssrn.2808776

Francesco Bogliacino

National University of Colombia - Department of Economics ( email )

Carrera 30 Calle 45 Ciudad Universitaria
Bogotá
Colombia

Gianluca Grimalda (Contact Author)

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Centre for Global Cooperation Research, University of Duisburg-Essen ( email )

Schifferstraße 196
Duisburg, NRW 47059
Germany

Jaume I University ( email )

Castellon
E-12071 Castello de la Plana, Castellón de la Plana 12071
Spain

Laura Jiménez

Fondazione Roberto Franceschi ( email )

Via Val d'Ossola, 19
Milano, 20162
Italy

Daniel Reyes Galvis

Open Evidence ( email )

Avd. Tibidabo, 39
Barcelona, 08035
Spain

Cristiano Codagnone

Università degli studi di Milano, Dipartimento di Scienze Sociali e Politiche ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

Universitat Oberta de Catalunya, Estudis de Ciències de la Informació i de la Comunicació ( email )

Tibidabo Av. 39-43
08035 Barcelona, Barcelona 08035
Spain

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