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ABSTRACT Incentives are a widely used tool for addressing deforestation and are often implemented as collective contracts. Local institutions are crucial to the solution of collective action problems associated with forest conservation, but we still have little knowledge of how to encourage institutional creation through policy. Since collective contracts do not eliminate freeriding incentives, we argue that their success hinges on their ability to stimulate the creation of institutions for collective action. To test these ideas, we analyze data from an incentivized lab‐in‐the‐field experimental collective action game played with natural resource users in four developing countries. The experiment simulates management of a common forest, and groups were randomly assigned to a conservation incentive payment condition. We observe how much group members attempt to coordinate on the creation of institutional rules and find experimental evidence that an external incentive program can stimulate the endogenous creation of informal institutions. 

Abstract Decentralization reform has both advantages and risks. Bringing service delivery “closer to the people” can improve information flows and strengthen accountability, but it may also leave systems vulnerable to elite capture and corruption by municipal government officials. While past research has acknowledged the possibility of corruption under decentralization, relatively little work has connected those risks to features of these reforms or specific local institutional arrangements. To explore the conditions that can help mitigate the risks of corruption under decentralization, we study the case of health sector reform in Honduras where municipal governments, associations, and NGOs each serve as intermediary-managing organizations under a common decentralized health service delivery model. We argue that three types of institutional arrangements reflecting local accountability practices serve as checks on the authority granted through decentralization and can help guard against corruption: external supervision, civil society engagement, and public participation. Empirically, we draw on data from more than 600 street-level bureaucrats, valuable but under-utilized informants about municipal corruption, across a matched sample of 65 municipalities with contrasting forms of administration. We find that reported corruption is highest under decentralization led by municipal governments, as compared to association- or NGO-led varieties. Both external supervision and civil society engagement help attenuate the positive association between decentralization and corruption, but public participation does not. Overall, this research highlights the importance of considering reform features and local conditions when designing policies to help manage risks and support effective social sector decentralization. 

Abstract The introduction of formal collective property rights to forest lands appears to have improved both environmental and economic outcomes, but there is limited evidence on how these reforms affect cooperative behavior among local resource users. We propose that when national governments issue collective land rights, they strengthen the collective psychological ownership among coowners and produce increased levels of cooperative behavior. Analyzing data from 213 forest user groups in 10 countries, and a framed field experiment in a subset of sites, we find that collective land titling is associated with significantly higher levels of cooperative behavior including increased levels of trust, more frequent interpersonal interactions related to both forestry and nonforestry activities, more self‐governing institutions, and greater equality in resource extraction patterns. 

Abstract Collective action among public officials is necessary for the effective delivery of many social services, but relatively little is known about how it can be fostered through policy reforms. In this article, we compare cooperation among public officials within decentralized versus centrally‐administered municipalities in Honduras. Leveraging a quasi‐experiment in health sector reform, coupled with behavioral games and social network surveys, we find that decentralization is associated with greater cooperation. When they are able to communicate, health sector workers in decentralized municipalities contribute more to a public good than their centrally‐administered counterparts. This increase in cooperative behavior results in part from the decentralization reform engendering greater numbers of interactions and stronger ties across different levels of government. These findings indicate that institutional reforms like decentralization can favorably reconfigure patterns of social interactions across public organizations, which is an important component of administrative capacity in developing countries.