Abstract
The success of a country's anti-corruption policy can crucially depend on its citizens’ beliefs about the existing legal environment. We test this key idea due to Basu (2020) using a novel experiment design. Our results suggest that Basu's “Republic of Beliefs” idea provides a critical insight in policy formulation; Merely introducing an anti-corruption law need not be sufficient in pushing the country towards the desired equilibrium, especially in developing countries, where the existing legal enforcement machinery has severe scopes of leakages.
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