Book ChapterDOI
The Consequences of a Changing Shadow Economy for the “Official” Economy: Some Empirical Results for Austria
Friedrich Schneider,Markus F. Hofreither,Reinhard Neck +2 more
- pp 181-211
TLDR
The shadow economy has received increasing attention by the public, politicians, and social scientists as discussed by the authors, and there are at least two reasons why politicians have become concerned about the growth and size of the shadow economy: 1) If an increase in the size of shadow economy is mainly caused by a rising tax burden, any increase in tax rates may lead to a further shift from official to in-official activities and, hence, a further decrease in tax revenues.Abstract:
During the last few years, growing concern about the phenomenon of the shadow (or hidden) economy has arisen; as a consequence, the shadow economy has received increasing attention by the public, politicians, and social scientists.1 For industrial countries, there are at least two reasons why politicians have become concerned about the growth and size of the shadow economy:
(1)
If an increase in the size of the shadow economy is mainly caused by a rising tax burden, any increase in tax rates may lead to a further shift from official to inofficial activities and, hence, to a further decrease in tax revenues.
(2)
If — due to the existence of the shadow economy — some individuals have a second source of income and spend at least part of this income in the “official” economy, any change in the size of the shadow economy directly affects the development of the official economy.read more
Citations
More filters
Journal ArticleDOI
Shadow Economies: Size, Causes, and Consequences
TL;DR: In this paper, the size of the shadow economy in 76 developing, transition, and OECD countries is estimated using various methods, and the average size varies from 12 percent of GDP for OECD countries, to 23 percent for transition countries and 39 percent for developing countries.
Journal ArticleDOI
Shadow economies around the world: what do we really know?
TL;DR: In this paper, the authors present estimates of the shadow economy for 110 countries, including developing, transition and developed OECD economies, and the average size of shadow economy as a proportion of official GDP in 1999-2000 in developing countries was 41%, in transition countries 38, and in OECD countries 17%.
Journal ArticleDOI
Shadow Economies and Corruption All Over the World: New Estimates for 145 Countries
TL;DR: In this article, the shadow economy for 145 countries, including developing, transition and highly developed OECD economies over 1999 to 2005, was estimated and various estimation methods were discussed and critically evaluated.
Journal Article
Shadow economies around the world : size, causes, and consequences
TL;DR: In this paper, estimates of the size of the shadow economy in 76 developing, transition and OECD-countries are presented using various methods (currency demand, physical input (electricity) method, model approach), which are discussed and criticized.
Journal ArticleDOI
Shadow Economies Around the World : Size, Causes, and Consequences
TL;DR: In this article, the authors present estimates of the size of the shadow economy in 76 developing, transition, and OECD countries, which are derived by combining figures from different estimation methods.
References
More filters
Book
Econometric Models and Economic Forecasts
TL;DR: First course in Econometrics in Economics Departments at better schools, also Economic/Business Forecasting prerequisite but no calculus as mentioned in this paper, slightly higher level and more comprehensive than Gujarati.
Journal ArticleDOI
The Underground Economy in the United States: Annual Estimates, 1930-80 (L'économie clandestine aux Etats-Unis: estimations annuelles, 1930-80) (La "economÃa subterránea" de Estados Unidos: Estimaciones anuales, 1930-80)
TL;DR: In this article, the authors presented yearly estimates for the underground economy in the United States for the period 1930-80, and the main conclusions can be summarized as follows: (1) in 1980, underground economy, expressed as a percentage of gross national product (GNP), was somewhere between 4.5 percent and 6.1 percent; (2) the only other period in which it might have been higher than that was during World War II, and (3) it has been increasing since the mid-1960s; and (4) over the period 1965-80
Journal ArticleDOI
The hidden economy as an ‘unobserved’ variable
TL;DR: In this article, the authors used the technique of unobserved variables to estimate the relative size and development time of the hidden economy of OECD countries and found that the burdens of taxation and regulations and the tax morality turn out to be statistically significant determinants.