Does moral culture contribute to the evolution of cooperation? Here, we examine individuals’ and communities’ models of what it means to be good and bad and how they correspond to corollary behavior across a variety of socioecological contexts. Our sample includes over 600 people from eight different field sites that include foragers, horticulturalists, herders, and the fully market-reliant. We first examine the universals and particulars of explicit moral models. We then use these moral models to assess their role in the outcome of an economic experiment designed to detect systematic, dishonest rule-breaking favoritism. We show that individuals are slightly more inclined to play by the rules when their moral models include the task-relevant virtues of “honesty” and “dishonesty.” We also find that religious beliefs are better predictors of honest play than these virtues. The predictive power of these values’ and beliefs’ local prevalence, however, remains inconclusive. In summary, we find that religious beliefs and moral models may help promote honest behavior that may widen the breadth of human cooperation.

This paper examines how tax policy should be designed to best encourage entrepreneurial activity in start-up firms. We begin by describing several presumed market failures affecting entrepreneurial firms that would lead to an under-provision of entrepreneurial activity: 1) information spillovers from innovations in entrepreneurial firms to other firms, 2) positive externalities to consumers from innovative new products sold by these firms, and 3) lemons problems in the market for both debt and equity issued by these firms. We then analyze the degree to which various tax policy measures can alleviate these failures. A key complication we focus on is the inability of the government to observe which, and the degree to which, any given start-up firm is entrepreneurial. This forces policy to target behavioral differences between entrepreneurial and non-entrepreneurial start-ups. We presume that start-up firms, to the degree they are entrepreneurial, face upfront costs in developing and marketing a new technology, and in the process face substantial risk. Our analysis then suggests the use of refundable tax savings from business losses in start-ups together with a compensating surtax on the profits of start-ups (needed in the case of lemons problems) to help alleviate the various market failures faced by entrepreneurial start-ups.

This paper explores tax policy effects and revenue implications of joining the World Trade Organization (WTO) and its predecessor, the General Agreement on Tariffs and Trade (GATT). It documents that countries joining GATT/WTO after 1990 have implemented tariff-cum-tax reforms, lowering tariff rates and raising consumption tax rates, in particular through reform or introduction of a value added tax (VAT). Employing a panel of 97 developing and transitional countries, 31 of which joined GATT/WTO between 1990 and 2011, using robust difference-in-difference specifications as well as the synthetic control method, we find a statistically and economically significant decline in revenues from import duties. This finding supports concerns about revenue losses, but also corroborates the efficacy of the late Uruguay GATT and the WTO trade regimes in promoting free trade among new members. Regarding consumption taxes, we find robust evidence that revenue substitution was successful, since revenue losses from import duties were more than compensated for by enhanced revenues from consumption taxes. With regard to the timing of the revenue effects, our results show that revenue losses in import duties mostly take place at the time of membership or later. Changes in consumption taxation, however, exhibit pre-membership effects, as revenues are increased, and VAT is adopted, often a few years ahead of losses in import duties. No such effects are found before the start of the accession negotiations, indicating that consumption tax reforms are initiated once a country is on the road to GATT/WTO membership.

The present study tested the impact of jury experience on citizens’ perceptions of the criminal prosecution system. Based on deliberative democratic theory which predicts the beneficial impact of jury experience on citizen-jurors’ confidence and knowledge in law and the justice system, it was hypothesized that jury experience would be associated with favorable impression of the criminal prosecution system and that jury experience would have a positive impact on citizens’ perceived knowledge of the criminal prosecution system. The present study through analyzing data collected by the American Prosecutors Research Institute (APRI), examined the effect of jury experience (versus no jury experience) on perceptions of the criminal prosecution system. Results show that jury experience positively influences citizen-jurors’ impression and perceived knowledge of the criminal prosecution, supporting an attitudinal and educational impact of jury experience. Potential limitations of the study and policy implications are discussed.

We study an enforcement model in which, as soon as a Legislator grants an amnesty to low-rank criminals cooperating with the justice, top criminals react by bribing public officials in order to avoid being sanctioned. We show that, to prevent this form of subversion of law, the optimal policy must grant leniency not only to low-rank criminals but also to officials who plead guilty and report bribe-givers. By doing so, the policy increases the conviction risk not only for top criminals but also for their soldiers. This higher risk increases the reservation wage that top criminals must pay in order to recruit soldiers and therefore reduces the crime profitability (the bright side of subversion of law).

Citizen-based accountability strategies to improve the lives of the poor and marginalized groups are increasingly being used in efforts to improve basic public services. The latest thinking suggests that broader, multi-pronged, multi-level, strategic approaches that may overcome the limitations of narrow, localized successes, hold more promise. This paper examines the challenges and opportunities, in theory and practice, posed by the integration of two such citizen-based accountability strategies—social accountability and legal empowerment. It traces the foundations of each of these approaches to highlight the potential benefits of integration. Consequently it examines whether these benefits have been realized in practice, by drawing upon five cases of organizations pursuing integration of social accountability and legal empowerment for health accountability in Macedonia, Guatemala, Uganda, and India. The cases highlight that while integration offers some promise in advancing the cause of social change, it also poses challenges for organizations in terms of strategies they pursue.

 

Land conflicts in many parts of the world indicate pressures for change in the property rights institutions governing land acquisition and land use. Whether or not institutional change occurs depends on the incentives and capacities of political actors. This article argues that the legal environment is one factor influencing incentives for institutional change. Three case studies of land governance in Southeast Asia’s palm oil industry illustrate three types of legal environment—rule-by-law legalism, legal pluralism and lawlessness, or routinized illegality. The cases show that the legal environment shapes modes of resistance to property reallocations in the palm oil industry. Rule-by-law legalism supports legalized modes of resistance through the court system. In contrast, legal pluralism and lawlessness favor the use of political strategies to contest property reallocations. The mode of resistance in turn determines whether actors acquiring property have incentives to gain legal cover, or whether investing in political resources is more rewarding. Although the effectiveness of resistance is largely determined by the distribution of political resources, the mode of resistance helps explain whether there is demand for property rights institutions that offer generalized legal certainty in property protection. Path-dependence arising from the legal environment therefore influences the direction of institutional change.