Theft, Gift-Giving, and Trustworthiness: Honesty Is Its Own Reward in Rural Paraguay

S-Tier
Journal: American Economic Review
Year: 2007
Volume: 97
Issue: 5
Pages: 1560-1582

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In developing countries lacking legal enforcement, villagers may use implicit contracts to minimize crime. I construct a dynamic limited-commitment model, in which a thief cannot commit to forego stealing, but is induced to steal less by the promise of future gifts. Combining survey data on production, theft, gifts, and trust with experiments measuring trustworthiness, I provide supporting evidence. Farmers living near more relatives or with plots that are difficult to steal from give fewer gifts and trust more, and those living near more relatives also experience less theft. Giving increases when trust is lower and the threat of theft is greater. (JEL D86, K42, O17, Z13)

Technical Details

RePEc Handle
repec:aea:aecrev:v:97:y:2007:i:5:p:1560-1582
Journal Field
General
Author Count
1
Added to Database
2026-01-29