This paper proposes a model of tax compliance and fiscal capacity grounded in universalization reasoning. Citizens partially internalize the consequences of concealment by imagining a world in which everyone acted similarly, linking their compliance decisions to the perceived effectiveness of public spending. A selfish elite chooses between public goods and private rents, taking compliance as given. In equilibrium, citizens' moral internalization expands the feasible tax base and induces elites to allocate resources toward provision rather than appropriation. When the value of public spending is uncertain, morality enables credible reform: high-value elites can signal their type through provision, prompting citizens to increase compliance and raising fiscal capacity within the same period. The analysis thus identifies a moral channel through which states may escape low-capacity traps even under weak institutions.

In an incentivized survey with experimental elements involving 1,547 respondents across three Italian cities we exploit regional variation in background, language and diet to investigate the relationship between cultural identity, trust and cooperation. Respondents with relatives who originate in the north of Italy, and who share common cultural characteristics, contributed 15% more in a public goods game and displayed greater trust towards others, than respondents whose language and diet had cultural links to the south. However, self-reported identity, a mainstay of the survey literature, had no predictive power. This highlights the importance of identity, but only if measured appropriately.

One of the advantages of multi-level government is that it can bring policies closer to voters, thus improving accountability. In this paper we ask whether such a layered and complex system can also erode transparency, undercutting accountability instead. We conduct a survey experiment with a nationally representative sample of 5,000 Italian citizens to investigate how responsibility for public services as well as their quality is perceived. We find that when respondents are asked which level of government is responsible for certain important services incorrect answers abound. A subset of respondents is then provided with correct information about which level of government is actually responsible. We find that when this feedback shifts perceived responsibility toward a government that is politically aligned with the respondent, service quality assessments become more favorable. These findings highlight the importance of information provision and the politically motivated quality assessment that can be present without it.

Amidst fiscal turmoil, understanding non-material determinants of well-being is critical. This study investigates how economic resources and social intangible assets—social capital and community consciousness—shape multidimensional well-being. Using Korean Happiness Survey data, we analyze four dimensions: happiness, meaning, satisfaction, and perceived autonomy.Findings reveal income is a robust predictor, especially for autonomy, identifying wealth as a primary enabler of individual agency. Crucially, social assets function as utility multipliers. The "happiness return" on income is significantly higher for individuals in robust social scaffolds, suggesting connectivity dictates the conversion efficiency of wealth into well-being.These results provide a structural explanation for the Easterlin Paradox and advocate for Well-being Budgeting. Amidst fiscal strain, public investment should prioritize social infrastructure to maximize the psychological utility of limited resources, fostering a resilient, self-directed society.