@TechReport{iza:izadps:dp14130, author={Dasgupta, Utteeyo and Radoniqi, Fatos}, title={Republic of Beliefs: An Experimental Investigation}, year={2021}, month={Feb}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={14130}, url={https://www.iza.org/publications/dp14130}, abstract={The success of a country's anti-corruption policies can crucially depend on the citizens' beliefs about the existing legal environment. We test this key idea of Basu (2020) using a novel design which systematically manipulates beliefs of participants in an experiment. Our results suggest that Basu's "Republic of Beliefs" idea provides a critical insight in policy formulation; Merely introducing an anti-corruption law is not sufficient in aiding the country towards the desired equilibrium, especially in developing countries, where the existing legal enforcement machinery has severe scopes of leakages.}, keywords={republic of beliefs;asymmetric punishment;harassment bribery;experiment}, }