Abstract

This paper examines whether providing citizens with tax receipts—documents detailing how their taxes are spent—can improve trust in government. Drawing on public choice theory, rational ignorance, and principal-agent models, the study explores how information influences public perception. A difference-in-differences analysis across five countries that introduced tax receipt initiatives reveals that trust in government actually declined following their implementation. This decline intensified over time, suggesting that transparency may expose gaps between government actions and citizen expectations. While tax receipts may increase awareness, they do not inherently foster trust. The findings highlight that transparency tools like tax receipts must be paired with substantive reforms to build accountability and public confidence. This study contributes to ongoing discussions on transparency by emphasizing the context-dependent nature of information-based governance strategies.

Advisor

Tian, Huiting

Department

Economics

Publication Date

2025

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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