Is There a Dividend of Democracy?

Autor(en)
Thomas Markussen, Jean-Robert Tyran
Abstrakt

Do democratically chosen rules lead to more cooperation and, hence, higher efficiency, than imposed rules? To discuss when such a “dividend of democracy” obtains, we review experimental studies in which material incentives remain stacked against cooperation (i.e., free-riding incentives prevail) despite adoption of cooperation-improving policies. While many studies find positive dividends of democracy across a broad range of cooperation settings, we also report on studies that find no dividend. We conclude that the existence of a dividend of democracy cannot be considered a stylized fact. We discuss three channels through which democracy can produce such a dividend: selection, signaling, and motivation. The evidence points to the role of “culture” in conditioning the operation of these channels. Accepting a policy in a vote seems to increase the legitimacy of a cooperation-inducing policy in some cultures but not in others.

Organisation(en)
Wiener Zentrum für Experimentelle Wirtschaftsforschung, Institut für Volkswirtschaftslehre
Externe Organisation(en)
University of Copenhagen
Band
10616
Publikationsdatum
08-2023
ÖFOS 2012
502010 Finanzwissenschaft, 502027 Politische Ökonomie, 502057 Experimentelle Ökonomie
Link zum Portal
https://ucrisportal.univie.ac.at/de/publications/6f97ebe4-ae75-45e0-91b6-b34f43b35887