Abstract
We model how the interplay between tax surveillance institutions and civic capital shapes taxpayers' support for welfare state. We show that, when tax surveillance is tight, rational civic-minded individuals express greater support
for welfare spending than uncivic ones. We provide empirical evidence of these preferences using data from Italy, a country that has long posed a puzzle for public economists for its limited civic capital and large welfare state.
Original language | English |
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Pages (from-to) | 313-336 |
Journal | Social Choice and Welfare |
DOIs | |
Publication status | Published - 1 Aug 2019 |
Externally published | Yes |
Keywords
- civic capital
- welfare state
- tax surveillance
- redistribution
- trust
- social capital