The long-term costs of government surveillance: insights from Stasi spying in East Germany


Lichter, Andreas ; Löffler, Max ; Siegloch, Sebastian


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URL: https://madoc.bib.uni-mannheim.de/53463
URN: urn:nbn:de:bsz:180-madoc-534633
Document Type: Working paper
Year of publication: 2019
The title of a journal, publication series: ZEW Discussion Papers
Volume: 19-049
Place of publication: Mannheim
Publication language: English
Institution: School of Law and Economics > VWL, Soziale Sicherung (Siegloch 2018-)
Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: H11 , N34 , N44 , P20,
Keywords (English): civic capital , government surveillance , trust , economic performance , East Germany
Abstract: We investigate the long-run effects of government surveillance on civic capital and economic performance, studying the case of the Stasi in East Germany. Exploiting regional variation in the number of spies and administrative features of the system, we combine a border discontinuity design with an instrumental variables strategy to estimatethe long-term, post-reunification effect of government surveillance. We find that a higher spying density led to persistently lower levels of interpersonal and institutional trust in post-reunification Germany. We also find substantial and long-lasting economic effectsof Stasi surveillance, resulting in lower income, higher exposure to unemployment, and lower self-employment.

Dieser Eintrag ist Teil der Universitätsbibliographie.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Lichter, Andreas ; Löffler, Max ; Siegloch, Sebastian (2019) The long-term costs of government surveillance: insights from Stasi spying in East Germany. Open Access ZEW Discussion Papers Mannheim 19-049 [Working paper]
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