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March 23, 2021
January 29, 2021

Marina Tkalec, senior research associate at The Institute of Economics, Zagreb, held a lecture History Matters: Development and Institutional Persistence of the Habsburg Military Frontier in Croatia" on March 4th 2020 at the Institute of Public Finance.

Tkalec explores the effect of the long-gone Habsburg Military Frontier on modern institutions in Croatia. She uses the Life in Transition Survey and geographic regression discontinuity design to identify the causal mechanism between historical institutions and attitudes towards trust and corruption. She finds that the areas of the former Military Frontier are underdeveloped and poorer with worse economic performance indicators. The results suggest that respondents living in the former Military Frontier territory have lower levels of interpersonal trust, a higher level of trust in public authorities, but also tend to bribe those institutions more often when they interact with them. Ms. Tkalec claims that the war in Yugoslavia in the 1990s is not just a confounding factor in the analysis, but also a potential channel and finds evidence that attitudes towards bribery can survive even harsh wars, while trust in public institutions collapses during extreme events of violence.

Lecture is based on her article published in Public Sector Economics

March 4, 2020
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