Seminar: Behavioural Economics

Presenter: Goytom Abraha Kahsay, Postdoc, IFRO


A small literature investigates the two-way relationship between social capital (trust) and institutions (“regulation”), suggesting these concepts may be substitutes in development. In this paper, we present micro-level evidence on the relationship between trust and institutions using data on forest user groups in Ethiopia. Using a regression framework, we find negative correlations between measures of trust and formalization of forest monitoring and extraction rules. Our instrumental variable regression results suggest that trust may have a causal effect on formal rules.

About the seminars

The intention with the seminars is to have paper presentations by external and internal IFRO people – but importantly the time slots can also be used for presenting ideas for future behavioral and experimental studies, and this way we often have very fruitful discussions and create constructive feedback for the presenter.

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