In this paper, we empirically investigate a channel through which social capital may improve economic wellbeing and the functioning of institutions: political accountability. The main idea is that voters who share norms of generalized morality demand higher standards of behavior on their elected...

We develop an endogenous growth model to simulate the long-term impact of Italy's National Recovery and Resilience Plan (NRRP) on the persistent North-South productivity gap. Our model underscores public investment as a catalyst for sustained economic growth and highlights the reliance of local...