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Trust in State and Nonstate Actors: Evidence from Dispute Resolution in Pakistan

Author

Listed:
  • Daron Acemoglu
  • Ali Cheema
  • Asim I. Khwaja
  • James A. Robinson

Abstract

This paper investigates whether information about improved public services can help build trust in state institutions and move people away from nonstate actors. We find that (truthful) information about reduced delays in state courts in rural Pakistan leads to citizens reporting higher likelihood of using them and to greater allocations to the state in high-stakes lab games. We also find negative indirect effects on nonstate actors and show that these changes are a response to improved beliefs about state actors, which make individuals interact less with nonstate actors and, we argue, induce them to downgrade their beliefs about these actors.

Suggested Citation

  • Daron Acemoglu & Ali Cheema & Asim I. Khwaja & James A. Robinson, 2020. "Trust in State and Nonstate Actors: Evidence from Dispute Resolution in Pakistan," Journal of Political Economy, University of Chicago Press, vol. 128(8), pages 3090-3147.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/707765
    DOI: 10.1086/707765
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    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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