The Legacy of Puviani’s Fiscal Illusion between Misunderstanding and Late Rediscovery

The past year, 2023, marked the 120^th anniversary of the publication of Puviani’s book, “Theory of Fiscal Illusion” (Teoria delle illusioni finanziarie). Over this significant period, we initially observe very few references to his theory, followed by analyses that highlighted its importance in the study of Public Finance. It was only in the second half of the last century that Puviani’s theory gained prominence beyond Italy, thanks to Buchanan, who regarded it as inspirational for his theories on the role of the state. Starting from the assumption that fiscal illusions persist because they are highly connected to political illusions, it is necessary to pay attention to the interpretations that politics and philosophy have given to Puviani’s writings over the years. This interdisciplinary approach also helps critically evaluate the influence of the Theory of Fiscal Illusions on the theories of Public Choice and transparency.