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This paper explores the link between trust in government, policymaking and compliance. It focuses on a specific channel whereby citizens who are convinced of the merits of a policy are more motivated to comply with it. This, in turn, reduces the government's cost of implementing this policy and may also increase the set of feasible interventions. As a result, state effectiveness is greater when citizens trust their government. The paper discusses alternative approaches to modelling the origins of trust, especially the link to the design of political institutions. We then provide empirical evidence consistent with the model's findings that compliance is increasing in government trust using the Integrated Values Survey and voluntary compliance during COVID-19 in the United Kingdom. [ABSTRACT FROM AUTHOR]

We examine the two-way interplay between organizational cultures and organizational design, where culture is modeled as the prevailing social identities among workplace groups that can affect project choices. In a setting where cultural dynamics depend on the expected relative payoffs of holding different identities, we investigate how tribalism and charismatic leadership shape organizational dynamics and steady-state cultures. We show how a strong culture can be a virtue when it permits greater delegated authority, but a vice when the culture is poorly aligned with organizational objectives. We apply our analysis to concrete debates about the interaction of design, performance, and culture (JEL L23, M14). [ABSTRACT FROM AUTHOR]