This paper will appraise the study of Roman identity in the Republican and Imperial periods by building on the so-called "Romanization Theory", and its resulting conceptual debates. Specifically, the role played by the Italians in the making of Imperial Roman identity at the time of Augustus will be critically evaluated. Firstly, the main modern theories on these historical processes will be briefly described. Secondly, the issue of Roman identity and the Italian question will be examined in the first decade of Livy's Ab Urbe Condita (AUC). Thirdly, it is concluded that the best suited model for a successful assessment of this phenomenon in Livy's work, is the so-called "Renewed Romanization".