TY - JOUR AU - Olken,Benjamin A. TI - Direct Democracy and Local Public Goods: Evidence from a Field Experiment in Indonesia JF - National Bureau of Economic Research Working Paper Series VL - No. 14123 PY - 2008 Y2 - June 2008 UR - http://www.nber.org/papers/w14123 L1 - http://www.nber.org/papers/w14123.pdf N1 - Author contact info: Benjamin A. Olken Department of Economics MIT 50 Memorial Drive Cambridge, MA 02142-1347 Tel: 617/588-1437 Fax: 617/868-2742 E-Mail: bolken@mit.edu AB - This paper presents an experiment where 48 Indonesian villages were randomly assigned to choose development projects through either representative-based meetings or direct election-based plebiscites. Plebiscites resulted in dramatically higher satisfaction among villagers, increased knowledge about the project, greater perceived benefits, and higher reported willingness to contribute. Changing the political mechanism had much smaller effects on the actual projects selected, with some evidence that plebiscites resulted in projects chosen by women being located in poorer areas. The results show that direct participation in political decision making can substantially increase satisfaction and legitimacy, even when it has little effect on actual decisions. ER -