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Historical Self‐Governance and Norms of Cooperation

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  • Devesh Rustagi
Abstract
Does self‐governance, a hallmark of democratic societies, foster norms of generalized cooperation? Does this effect persist, and if so, why? I investigate these questions using a natural experiment in Switzerland. In the Middle Ages, the absence of an heir resulted in the extinction of a prominent noble dynasty. As a result, some Swiss municipalities became self‐governing, whereas the others remained under feudalism for another 600 years. Evidence from a behavioral experiment, the World Values Survey and the Swiss Household Panel consistently show that individuals from historically self‐governing municipalities exhibit stronger norms of cooperation today. Referenda data on voter‐turnout allow me to trace these effects on individually costly and socially beneficial actions for over 150 years. Furthermore, norms of cooperation map into prosocial behaviors like charitable giving and environmental protection. Uniquely, Switzerland tracks every family's place of origin in registration data, which I use to demonstrate persistence from cultural transmission in a context of historically low migration.

Suggested Citation

  • Devesh Rustagi, 2024. "Historical Self‐Governance and Norms of Cooperation," Econometrica, Econometric Society, vol. 92(5), pages 1473-1502, September.
    • Handle: RePEc:wly:emetrp:v:92:y:2024:i:5:p:1473-1502
    DOI: 10.3982/ECTA20579
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    4. Schündeln, Matthias & Van Vlodrop, Johannes, 2023. "Revisiting the historical state: Long-term effects of institutional history on deforestation," Economics Letters, Elsevier, vol. 233(C).

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    More about this item

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913

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