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FOLLOW THE LEADER? TESTING FOR THE INTERNALIZATION OF LAW

Accepted version
Peer-reviewed

Type

Article

Change log

Authors

Larcom, ST 
Panzone, Luca 
Swanson, Tim 

Abstract

The internalization of law is said to be a process that involves a change in people’s intrinsic motivation to act in accord with law’s obligations – so that it is possible to observe imposed obligations become individual choices. We empirically test for this phenomenon, by attempting to disentangle the impacts of a legal change (a 5 pence charge on use of plastic bags) on intrinsic motivation and individual choice. We do so by measuring both behaviors and attitudes before and after the legal change, and by comparing the impacts across neighboring jurisdictions without the change. Using a differences-in-differences (DID) estimator we find evidence for the internalization of law: that is, we find a significant increase in intrinsic motivation for those consumers subject to the implementation of the legislative change, and link this change in intrinsic motivation to an actual change in behavior. However, using mediation analysis we find that internalization of the law only explains around 5 to 8% of the change in behavior – the rest being attributable to the direct effect of the charge.

Description

Keywords

38 Economics, 48 Law and Legal Studies, 4804 Law In Context, 3801 Applied Economics

Journal Title

The Journal of Legal Studies (Chicago)

Conference Name

Journal ISSN

1537-5366
1537-5366

Volume Title

48

Publisher

University of Chicago Press
Sponsorship
Departmental research allowance.