Munich Personal RePEc Archive

Civic capital and support for the welfare state

Cerqueti, Roy and Sabatini, Fabio and Ventura, Marco (2016): Civic capital and support for the welfare state.

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Abstract

We model the way 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.

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