The Empire Is Dead, Long Live the Empire! Long-Run Persistence of Trust and Corruption in the Bureaucracy

Economic Journal

Volumn 126, Issue 590, 2016, Pages 40-74

  Becker, Sascha O ^a   Boeckh, Katrin ^b   Hainz, Christa ^c   Woessmann, Ludger ^d  

^a UNIVERSITY OF WARWICK   (United Kingdom)

^b UNIVERSITY OF MUNICH   (Germany)

^c UNIVERSITY OF AUGSBURG   (Germany)

^d CESIFO   (Germany)

Author keywords

[No Author keywords available]

Indexed keywords

BORDER REGION; BUREAUCRACY; CORRUPTION; PUBLIC SERVICE;

EASTERN EUROPE;

EID: 84957851754     PISSN: 00130133     EISSN: 14680297     Source Type: Journal    
DOI: 10.1111/ecoj.12220     Document Type: Article

References (106)

1. Acemoglu, D., Cantoni, D., Johnson, S. and Robinson, J. (2011). 'The consequences of radical reform: the French revolution', American Economic Review, vol. 101(7), pp. 3286-307.
2. Acemoglu, D., Johnson, S. and Robinson, J.A. (2001). 'The colonial origins of comparative development: an empirical investigation', American Economic Review, vol. 91(5), pp. 1369-401.
3. Acemoglu, D., Johnson, S. and Robinson, J.A. (2002). 'Reversal of fortune: geography and institutions in the making of the modern world income distribution', Quarterly Journal of Economics, vol. 117(4), pp. 1231-94.
4. Acemoglu, D., Johnson, S. and Robinson, J.A. (2005). 'The rise of Europe: Atlantic trade, institutional change, and economic growth', American Economic Review, vol. 95(3), pp. 546-79.
5. Aghion, P., Algan, Y., Cahuc, P. and Shleifer, A. (2010). 'Regulation and distrust', Quarterly Journal of Economics, vol. 125(3), pp. 1015-49.
6. Akçomak, I˙. S., Webbink, D. and ter Weel, B. (2014). 'Why did the Netherlands develop so early? The legacy of the brethren of the common life', Economic Journal, (forthcoming).
7. Alesina, A. and Fuchs-Schündeln, N. (2007). 'Goodbye Lenin (or not?): the effect of Communism on people', American Economic Review, vol. 97(4), pp. 1507-28.
8. Algan, Y. and Cahuc, P. (2010). 'Inherited trust and growth', American Economic Review, vol. 100(5), pp. 2060-92.
9. Arrow, K.J. (1972). 'Gifts and exchanges', Philosophy and Public Affairs, vol. 1(4), pp. 343-62.
10. Ashraf, Q. and Galor, O. (2013). 'The "out of Africa" hypothesis, human genetic diversity, and comparative economic development', American Economic Review, vol. 103(1), pp. 1-46.
11. Bairoch, P. (1988). Cities and Economic Development: From the Dawn of History to the Present, Chicago, IL: University of Chicago Press.
12. Bairoch, P., Batou, J. and Chèvre, P. (1988). The Population of European Cities from 800 to 1850: Data Bank and Short Summary of Results, Genève: Librairie Droz/Centre of International Economic History.
13. Becker, S.O. and Woessmann, L. (2009). 'Was Weber wrong? A human capital theory of Protestant economic history', Quarterly Journal of Economics, vol. 124(2), pp. 531-96.
14. Becker, S.O., Boeckh, K., Hainz, C. and Woessmann, L. (2011). 'The empire is dead, long live the empire! Long-run persistence of trust and corruption in the bureaucracy', CESifo Working Paper 3392, CESifo Munich.
15. Belloc, M. and Bowles, S. (2009). 'International trade, factor mobility and the persistence of cultural-institutional diversity', CESifo Working Paper 2762, CESifo Munich.
16. Bencze, L. (2006). The Occupation of Bosnia and Herzegovina in 1878, Boulder, CO: Columbia University Press.
17. Bisin, A. and Verdier, T. (2000). 'Beyond the melting pot: cultural transmission, marriage, and the evolution of ethnic and religious traits', Quarterly Journal of Economics, vol. 115(3), pp. 955-88.
18. Black, S.E. (1999). 'Do better schools matter? Parental valuation of elementary education', Quarterly Journal of Economics, vol. 114(2), pp. 577-99.
19. Blanchflower, D.G. and Oswald, A.J. (2004). 'Well-being over time in Britain and the USA', Journal of Public Economics, vol. 88(7-8), pp. 1359-86.
20. Boeckh, K. (2011). 'Korruption und Habsburger Erbe: Historische und ökonomische Beobachtungen', Paper presented at corruption conference, Institute for Eastern Law, Kiev, June. (published: Korupcija ta spadok Habsburhiv. Istorychnyi ta ekonomichni sposterezhennja, in Pravovi aspekty borot' by z korupcijeju: dosvid Ukraïny, Nimechchyny ta Pol'shchi. Materialy mizhnarodnych naukovo-praktychnych doslidzhen, pp. 22-38, Kyïv: Instytut zakonodavstva Verchovnoï Rady Ukraïny, Miunkhens'kyj Instytut skhidnojevropejs'koho prava.
21. Boeckh, K. (2012). 'Das Erbe Habsburgs: Normen und Werte in gegenwärtigen Staaten Osteuropas', in (C. Botzenhart, A. Burtscheidt and G. Hackenberg-Treutlein, eds.), Gesellschaftliche Relevanz von Wissenschaft und Forschung: Ein interdisziplinärer Diskurs, pp. 103-22, Paderborn: Ferdinand Schöningh.
22. Boeckh, K. (2013). 'Perspektiven einer Religions- und Kirchengeschichte des südöstlichen Europas: Netze über Raum und Zeit', in (S. Rutar, ed.), Beyond the Balkans: Towards an Inclusive History of Southeastern Europe, pp. 199-224, Münster: Lit Verlag.
23. Cantoni, D. (2014). 'The economic effects of the Protestant Reformation: testing the Weber hypothesis in the German lands', Journal of the European Economic Association, (forthcoming).
24. Corman, H. and Mocan, N. (2005). 'Carrots, sticks, and broken windows', Journal of Law and Economics, vol. 48(1), pp. 235-66.
25. Dell, M. (2010). 'The persistent effects of Peru's mining mita', Econometrica, vol. 78(6), pp. 1863-903.
26. Diamond, J. (1997). Guns, Germs, and Steel, New York: W.W. Norton.
27. Dohmen, T., Falk, A., Huffman, D. and Sunde, U. (2012). 'The intergenerational transmission of risk and trust attitudes', Review of Economic Studies, vol. 79(2), pp. 645-77.
28. Engel, C., Beckenkamp, M., Glöckner, A., Irlenbusch, B., Hennig-Schmidt, H., Kube, S., Kurschilgen, M., Morell, A., Nicklisch, A., Normann, H.-T. and Towfigh, E. (2014). 'First impressions are more important than early intervention: qualifying broken windows theory in the lab', International Review of Law and Economics, vol. 37, pp. 126-36.
29. Engerman, S.L and Sokoloff, K.L. (1997). 'Factor endowments, institutions, and differential paths of growth among new world economies: a view from economic historians of the United States', in (S. Haber, ed.), How Latin America Fell Behind, pp. 260-304, Stanford, CA: Stanford University Press.
30. Fehr, E. (2009). 'On the economics of biology and trust', Journal of the European Economic Association, vol. 7(2-3), pp. 235-66.
31. Fernández, R. and Fogli, A. (2009). 'Culture: an empirical investigation of beliefs, work, and fertility', American Economic Journal: Macroeconomics, vol. 1(1), pp. 146-77.
32. Fisman, R. and Miguel, E. (2007). 'Corruption, norms and legal enforcement: evidence from diplomatic parking tickets', Journal of Political Economy, vol. 115(6), pp. 1020-48.
33. Garton Ash, T. (1990). We the People: The Revolution of '89 Witnessed in Warsaw, Budapest, Berlin & Prague, London: Granta Books.
34. Giuliano, P. (2007). 'Living arrangements in Western Europe: does cultural origin matter?', Journal of the European Economic Association, vol. 5(5), pp. 927-52.
35. Glaeser, E.L., La Porta, R., Lopez-de-Silanes, F. and Shleifer, A. (2004). 'Do institutions cause growth?', Journal of Economic Growth, vol. 9(3), pp. 271-303.
36. Glaeser, E.L., Laibson, D. and Sacerdote, B. (2002). 'An economic approach to social capital', Economic Journal, vol. 112(483), pp. F437-58.
37. Glenny, M. (2000). The Balkans 1804-1999: Nationalism, War and the Great Power, London: Granta Books.
38. Good, D.F. (1984). The Economic Rise of the Habsburg Empire, 1750-1918, Berkeley, CA: University of California Press.
39. Greif, A. (1994). 'Cultural beliefs and the organization of society: a historical and theoretical reflection on collectivist and individualist societies', Journal of Political Economy, vol. 102(5), pp. 912-50.
40. Greif, A. (2006). Institutions and the Path to the Modern Economy: Lessons from Medieval Trade, Cambridge: Cambridge University Press.
41. Greif, A. and Tabellini, G. (2010). 'Cultural and institutional bifurcation: China and Europe compared', American Economic Review, vol. 100(2), pp. 135-40.
42. Grosfeld, I., Rodnyansky, A. and Zhuravskaya, E. (2013). 'Persistent anti-market culture: a legacy of the pale of settlement and of the holocaust', American Economic Journal: Economic Policy, vol. 5(3), pp. 189-226.
43. Grosfeld, I. and Zhuravskaya, E. (2013). 'Persistent effects of empires: evidence from the Partitions of Poland', CEPR Discussion Paper 9371, Centre for Economic Policy Research London.
44. Grosjean, P. (2011a). 'The weight of history on European cultural integration: a gravity approach', American Economic Review, Papers and Proceedings, vol. 101(3), pp. 504-8.
45. Grosjean, P. (2011b). 'The institutional legacy of the Ottoman Empire: Islamic rule and financial development in south Eastern Europe', Journal of Comparative Economics, vol. 39(1), pp. 1-16.
46. Grosjean, P. and Senik, C. (2011). 'Democracy, market liberalization, and political preferences', Review of Economics and Statistics, vol. 93(1), pp. 365-81.
47. Guiso, L., Sapienza, P. and Zingales, L. (2006). 'Does culture affect economic outcomes?', Journal of Economic Perspectives, vol. 20(2), pp. 23-48.
48. Guiso, L., Sapienza, P. and Zingales, L. (2008a). 'Long term persistence', NBER Working Paper 14278, National Bureau of Economic Research Cambridge, MA.
49. Guiso, L., Paola, S. and Zingales, L. (2008b). 'Social capital as good culture', Journal of the European Economic Association, vol. 6(2-3), pp. 295-320.
50. Hayek, F.A. (1960). The Constitution of Liberty, London: Routledge & Kegan Paul.
51. Henkel, L., Rossolinski, G. and Ther, P., eds. (2007). Eine neue Gesellschaft in einer alten Stadt: Erinnerung und Geschichtspolitik in Lemberg anhand der Oral History, Wroclaw.
52. Hrvatski Povijesni Atlas (2003). Hrvatski Povijesni Atlas [Croatian Historical Atlas], Zagreb: Leksikografski zavod Miroslav Krleža.
53. Hrytsak, Y. and Susak, V. (2003). 'Constructing a national city: the case of L'viv', in (J.J. Czaplicka and B.A. Ruble, eds.), Composing Urban History and the Constitution of Civic Identities, pp. 140-64. Washington, DC: Woodrow Wilson Center Press.
54. Ichino, A. and Maggi, G. (2000). 'Work environment and individual background: explaining regional shirking differentials in a large Italian firm', Quarterly Journal of Economics, vol. 115(3), pp. 1057-90.
55. Imamović, M. (2007). Pravni položaj i unutrašnjo-politički razvitak BiH od 1878 - 1914 [The Legal Situation and the Inner Political Development of Bosnia and Herzegovina from 1878 to 1914], 3rd edn. Sarajevo: Magistrat.
56. Imbens, G. and Lemieux, T. (2008). 'Regression discontinuity designs: a guide to practice', Journal of Econometrics, vol. 142(2), pp. 615-35.
57. Ingrao, C.W. (1996). 'Ten untaught lessons about Central Europe: an historical perspective', Center for Austrian Studies Working Paper 96-3, University of Minnesota.
58. Ingrao, C.W. (2000). The Habsburg Monarchy, 1618-1815, 2nd edn. Cambridge: Cambridge University Press.
59. Ingrao, C.W., Samardžić, N. and Pešalj, J. (eds.) (2011). The Peace of Passarowitz, 1718, West Lafayette, IN: Purdue University Press.
60. Iyigun, M. (2008). 'Luther and Suleyman', Quarterly Journal of Economics, vol. 123(4), pp. 1465-94.
61. Jha, S. (2013). 'Trade, institutions, and ethnic tolerance: evidence from South Asia', American Political Science Review, vol. 107(4), pp. 806-32.
62. Kaczmarek, R. (2010). Historia Polski 1914-1989, Warszawa: Wydawnictwo Naukowe PWN.
63. Kinder, H. and Hilgemann, W. (2004). dtv-Atlas Weltgeschichte: Von den Anfängen bis zur Gegenwart, München: Deutscher Taschenbuch Verlag.
64. Komlos, J. (1983). The Habsburg Monarchy as a Customs Union: Economic Development in Austria-Hungary in the Nineteenth Century, Princeton, NJ: Princeton University Press.
65. Kraft, C. (2002). Europa im Blick der polnischen Juristen: Rechtsordnung und juristische Profession in Polen im Spannungsfeld zwischen Nation und Europa, 1918-1939, Frankfurt am Main: Klostermann.
66. Küpper, H. (2005). Einführung in die Rechtsgeschichte Osteuropas, Frankfurt am Main: Lang.
67. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R.W. (1998). 'Law and finance', Journal of Political Economy, vol. 106(6), pp. 1113-55.
68. Lalive, R. (2008). 'How do extended benefits affect unemployment duration? A regression discontinuity approach', Journal of Econometrics, vol. 142(2), pp. 785-806.
69. Lee, D.S. and Lemieux, T. (2010). 'Regression discontinuity designs in economics', Journal of Economic Literature, vol. 48(2), pp. 281-355.
70. Leisering, W. (2004). Historischer Weltatlas, Wiesbaden: Marixverlag.
71. Long, J.S. (1997). 'Regression Models for Categorical and Limited Dependent Variables', Advanced Quantitative Techniques in the Social Sciences Series No. 7. Thousand Oaks, CA: Sage Publications.
72. Maddala, G.S. (1983). Limited-Dependent and Qualitative Variables in Econometrics, Econometric Society Monographs No. 3. New York: Cambridge University Press.
73. Magocsi, P.R. (2002). Historical Atlas of East Central Europe, Seattle, WA: University of Washington Press.
74. Magocsi, P.R. (2010). A History of Ukraine: The Land and Its People, 2nd edn. Toronto: University of Toronto Press.
75. Mark, R.A. (1994). Galizien unter österreichischer Herrschaft: Verwaltung - Kirche - Bevölkerung, Marburg: Herder.
76. Mitchener, K.J. and Weidenmier, M. (2008). 'Trade and empire', Economic Journal, vol. 118(533), pp. 1805-34.
77. Mroczka, L. (1996). 'Die Beziehungen Österreichs zu Galizien nach dessen Loslösung aus dem Gefüge der k.u.k. Monarchie im Oktober 1918', in (J. Buszko, ed.), Österreich - Polen: 1000 Jahre Beziehungen, Studia Austro-Polonica 5, pp. 331-42, Kraków: Nakladem Uniw.
78. North, D.C. (1990). Institutions, Institutional Change and Economic Performance, Cambridge: Cambridge University Press.
79. Nunn, N. (2008). 'The long-term effects of Africa's slave trades', Quarterly Journal of Economics, vol. 123(1), pp. 139-76.
80. Nunn, N. (2009). 'The importance of history for economic development', Annual Review of Economics, vol. 1(1), pp. 65-92.
81. Nunn, N. (2014). 'Historical development', in (P. Aghion, and S. N. Durlauf, eds.), Handbook of Economic Growth, vol. 2, pp. 347-402, Amsterdam: North Holland.
82. Nunn, N. and Wantchekon, L. (2011). 'The slave trade and the origins of mistrust in Africa', American Economic Review, vol. 101(7), pp. 3221-52.
83. Ostrom, E. (1998). 'A behavioral approach to the rational choice theory of collective action', American Political Science Review, vol. 92(1), pp. 1-22.
84. Peisakhin, L. (2012). 'In history's shadow: persistence of identities and contemporary political behavior', Juan March Institute Working Paper 2012/272, Centro de Estudios Avanzados en Ciencias Sociales Madrid.
85. Putnam, R. (with Leonardi, R. and Nanetti, R.) (1993). Making Democracy Work: Civic Traditions in Modern Italy, Princeton, NJ: Princeton University Press.
86. Rothaug, R. (2001). Atlas des Habsburger-Reiches, Braunschweig: Archiv-Verlag.
87. Sacerdote, B. (2011). 'Peer effects in education: how might they work, how big are they and how much do we know thus far?' in (E.A. Hanushek, S. Machin, and L. Woessmann, eds.), Handbook of the Economics of Education, vol. 3, pp. 249-77 Amsterdam: North Holland.
88. Sachs, J.D. (2003). 'Institutions don't rule: direct effects of geography on per capita income', NBER Working Paper 9490, National Bureau of Economic Research, Cambridge, MA.
89. Schulze, M. and Wolf, N. (2009). 'On the origins of border effects: insights from the Habsburg Empire', Journal of Economic Geography, vol. 9(1), pp. 117-36.
90. Schulze, M. and Wolf, N. (2012). 'Economic nationalism and economic integration: the Austro-Hungarian empire in the late nineteenth century', Economic History Review, vol. 65(2), pp. 652-73.
91. Sieghart, R. (1932). Die letzten Jahrzehnte einer Großmacht: Menschen, Völker, Probleme des Habsburger-Reichs, Berlin: Ullstein.
92. Slapnicka, H. (1973). Österreichs Recht außerhalb Österreichs: Der Untergang des österreichischen Rechtsraums, Wien: Verlag für Geschichte und Politik.
93. Spolaore, E. and Wacziarg, R. (2013). 'How deep are the roots of economic development?', Journal of Economic Literature, vol. 51(2), pp. 325-69.
94. Stegmann, N. (2014). 'Die Habsburgermonarchie als Fundament: Sozialpolitik in der Tschechoslowakei, 1918-1948', in (K. Boeckh, K. Busa, A. Himmelreich, E. Pezo, and N. Stegmann, eds.), Staatsbürgerschaft und Teilhabe: Bürgerliche, politische und soziale Rechte im östlichen Europa, pp. 51-65, München: Oldenbourg.
95. Subtelny, O. (2007). 'The Habsburg and Russian empires: some comparisons and contrasts', in (H. Teruyuki and K. Matsuzato, eds.), Empire and Society: New Approaches to Russian History, pp. 73-92, Sapporo: Slavic Research Center, Hokkaido University.
96. Svensson, J. (2005). 'Eight questions about corruption', Journal of Economic Perspectives, vol. 19(3), pp. 19-42.
97. Tabellini, G. (2008a). 'Institutions and culture', Journal of the European Economic Association, vol. 6(2-3), pp. 255-94.
98. Tabellini, G. (2008b). 'The scope of cooperation: values and incentives', Quarterly Journal of Economics, vol. 123(3), pp. 905-50.
99. Tabellini, G. (2010). 'Culture and institutions: economic development in the regions of Europe', Journal of the European Economic Association, vol. 8(4), pp. 677-716.
100. Taylor, A.J.P. (1948). The Habsburg Monarchy 1809-1918: A History of the Austrian Empire and Austria-Hungary, London: Penguin Books (reprint 1990).
101. Transparency International. (2007). Global Corruption Report 2007: Corruption in Judicial Systems, Cambridge: Cambridge University Press.
102. von Reden, A.S. (1995). Österreich-Ungarn: Die Donaumonarchie in historischen Dokumenten, 5th edn. Wien: Ueberreuter.
103. Weber, M. (1904). 'Die protestantische Ethik und der "Geist" des Kapitalismus', Archiv für Sozialwissenschaft und Sozialpolitik, vol. 20, pp. 1-54.
104. Williams, R. (2006). 'Generalized ordered logit/partial proportional odds models for ordinal dependent variables', Stata Journal, vol. 6(1), pp. 58-82.
105. Woodberry, R.D. (2004). The shadow of empire: christian missions, colonial policy, and democracy in postcolonial societies. Ph.D. Dissertation, Department of Sociology, University of North Carolina, Chapel Hill.
106. Zöllner, E. (1990). Geschichte Österreichs: Von den Anfängen bis zur Gegenwart, 8th ed. Wien: Verlag für Geschichte und Politik.