Showing papers on "Shadow (psychology) published in 2010"

New Estimates for the Shadow Economies all over the World

Abstract: This paper presents estimations of the shadow economies for 162 countries, including developing, Eastern European, Central Asian, and high income OECD countries over 1999 to 2006/2007. According to our estimations, the weighted average size of the shadow economy (as a percentage of ‘official’ GDP) in Sub-Saharan Africa is 37.6%, in Europe and Central Asia (mostly transition countries) 36.4% and in high income OECD countries 13.4%. We find that an increased burden of taxation (direct and indirect ones), combined with (labour market) regulations and the quality of public goods and services as well as the state of the ‘official’ economy are the driving forces of the shadow economy.

Shadow economies all over the world : new estimates for 162 countries from 1999 to 2007

Abstract: This paper presents estimations of the shadow economies for 162 countries, including developing, Eastern European, Central Asian, and high-income countries over the period 1999 to 2006/2007. According to the estimations, the weighted average size of the shadow economy (as a percentage of"official"gross domestic product) in Sub-Saharan Africa is 38.4 percent; in Europe and Central Asia (mostly transition countries), it is 36.5 percent, and in high-income OECD countries, it is 13.5 percent. The authors find a clear negative trend in the size of the shadow economy: The unweighted average of the 162 countries in 1999 was 34.0 percent and in 2007 31.0 percent; hence a reduction of 3 percentage points!.The driving forces of the shadow economy are an increased burden of taxation (both direct and indirect), combined with labor market regulations and the quality of public goods and services, as well as the state of the"official"economy.

Corruption and the Shadow Economy: An Empirical Analysis

Abstract: This paper analyzes the influence of the shadow economy on corruption and vice versa. We hypothesize that corruption and the shadow economy are substitutes in high income countries while they are complements in low income countries. The hypotheses are tested for a cross-section of 98 countries. Our results show that there is no robust relationship between corruption and the size of the shadow economy when perceptions-based indices of corruption are used. Employing an index of corruption based on a structural model, however, corruption and the shadow economy are complements in countries with low income, but not in high income countries.

Governance without a state: Can it work?

Abstract: In this article we explore how much state is necessary to make governance work. We begin by clarifying concepts of governance and the “shadow of hierarchy” and we follow this clarification with a brief overview of empirical findings on governance research in developed countries. We then discuss the dilemmas for governance in areas of limited statehood, where political institutions are too weak to hierarchically adopt and enforce collectively binding rules. While prospects for effective policymaking appear to be rather bleak in these areas, we argue that governance research has consistently overlooked the existence of functional equivalents to the shadow of hierarchy. We assert that governance with(out) government can work even in the absence of a strong shadow of hierarchy, we identify functional equivalents to the shadow of hierarchy, and we discuss to what extent they can help overcome issues of legitimacy and effectiveness in areas of limited statehood.

Regulating the Shadow Banking System

Abstract: The “shadow” banking system played a major role in the financial crisis, but was not a central focus of the recent Dodd-Frank Law and thus remains largely unregulated. This paper proposes principles for the regulation of shadow banking and describes a specific proposal to implement those principles. We first document the rise of shadow banking over the last three decades, helped by regulatory and legal changes that gave advantages to three main institutions of shadow banking: money-market mutual funds (MMMFs) to capture retail deposits from traditional banks, securitization to move assets of traditional banks off their balance sheets, and repurchase agreements (“repo”) that facilitated the use of securitized bonds in financial transactions as a form of money. A central idea of this paper is that the evolution of a bankruptcy “safe harbor” for repo has been a crucial feature in the growth and efficiency of shadow banking, and so regulators can use access to this safe harbor as the lever to enforce new rules. As for the rules themselves, history has demonstrated two successful methods for the regulation of privately created money: strict guidelines on collateral (used to stabilize national bank notes in the 19 century), and government-guaranteed insurance (used to stabilize demand deposits in the 20 century). We propose the use of insurance for MMMFs combined with strict guidelines on collateral for both securitization and repo as the best approach for shadow banking, with regulatory control established by chartering new forms of narrow banks for MMMFs and securitization and using the bankruptcy safe harbor to incent compliance on repo. *Thanks to Stefan Lewellen, Marcus Shak, and Lei Xie for research assistance; Darrell Duffie, Victoria Ivashina, Robert Merton, Stephen Partridge-Hicks, Eric Rasmusen, David Romer, Nick Sossides, David Scharfstein, Andrei Shleifer, Carolyn Sissoko, Jeremy Stein, Phillip Swagel, David Swensen, Daniel Tarullo, Justin Wolfers and seminar participants at Brookings and MIT for many helpful comments and discussions; E. Philip Davis, Ingo Fender, and Brian Reid for assistance with data; and Sara Dowling for help with figures.

Shadow Education, American Style: Test Preparation, the SAT and College Enrollment

Abstract: Cross-national research finds that "shadow education" — educational activities outside of formal schooling — tends to confer advantages on already privileged students. Shadow education in the United States, such as test prep for college entrance exams, has received considerably less attention. Drawing on the National Education Longitudinal Study, we analyze the likelihood of participation in, and the implications of, SAT preparation. Social class inequalities in test preparation, particularly costly SAT courses and private tutoring, are notable and have at least moderate consequences for SAT scores and selective college enrollment. We also find racial/ethnic variations in the use of test preparation. We consider the implications of these findings for understanding shadow education, stratification and educational mobility in the United States.

Survey on the shadow economy and undeclared earnings in oecd countries

Abstract: In most OECD countries THE policy instrument of choice to prevent people from working in the shadows has been deterrence. While deterrence is well-founded from a theoretical point of view, the empirical evidence on its success is weak: tax policies and state deregulation appear to work much better. The discussion of the recent literature underlines that in addition economic opportunities, the overall situation in the labor market, and unemployment are crucial for an understanding of the dynamics of the shadow economy. JEL-Classification: K42, H26, D78.

Shadow economies all over the world : new estimates for 162 countries from 1999 to 2007

Abstract: This paper presents estimations of the shadow economies for 162 countries, including developing Eastern European, Central Asian, and high income OECD countries over the period 1999 to 2006/2007. According to our estimations, the average size of the shadow economy (as a percent of "official" GDP) in 2006 in 98 developing countries is 38.7%, in 21 Eastern European and Central Asian (mostly transition) countries it is 38.1%, and in 25 high income OECD countries it is 18.7%. We find that the driving forces of the shadow economy are an increased burden of taxation (both direct and indirect), combined with labor market regulations and the quality of public goods and services, as well as the state of the “official” economy.

Private tutoring and mass schooling in East Asia: reflections of inequality in Japan, South Korea, and Cambodia

Abstract: This paper examines private tutoring systems in three East Asian countries (Japan, South Korea, and Cambodia) with the purpose of examining the relationship between those systems and formal education systems. The study of private tutoring systems in each nation can be used to reveal the inadequacies of the formal education system in meeting the ideal of equal opportunity of education in relation to high-stakes examinations. In each nation, the private tutoring system functions as a “shadow education market” to absorb unmet demand for additional education in a parasitic relationship with the formal system. Governments have enacted various policies to respond to the growing private tutoring systems which have proven largely ineffective and often led to further expansion. Pedagogical and curricular practices in the private tutoring systems have functioned to increase “anxiety” and “insecurity” in regard to the formal education system with the purpose of expanding the market. Studies of mass schooling systems and equal opportunity are incomplete without due consideration toward the role of the private tutoring system. Efforts toward education policy-making and reform to further the ideal of equal opportunity of education must be informed by such research on private tutoring.

The origin of universal shadow education: what the supplemental education phenomenon tells us about the postmodern institution of education

Abstract: Prodigious growth in out-of-school, private educational activities meant to supplement formal schooling is observed worldwide. Why has shadow education expanded, and what does it mean for the future of education in postmodern society? Illustrated by the historical development and recent changes in the Japanese shadow education industry, it is suggested that shadow education follows the institutional logic of formal education. And as this logic has become more homogenized and expansive globally, so have the forms and goals of shadow education. Because of its focus on learning and achievement, which are central to formal education, it is predicted that shadow education will be increasingly incorporated into the broader culture of education.

The Influence of Public Institutions on the Shadow Economy: An Empirical Investigation for OECD Countries

Abstract: The size and development of the shadow economy of 21 OECD countries is estimated, using the MIMIC estimation procedure. The analysis finds that an increased burden of taxation and social security payments, combined with intensive labor market regulation, quality of state institutions, and tax morale, are the driving forces for the shadow economy. The public institution of federalism has no statistically significant effect on the shadow economy. Finally, on the one side, incentive-oriented policy means are suggested so that any black value added can be transformed into official value added, and on the other side, it is important to have public institutions which work efficiently and act as a constraint for selfish politicians.

Researching shadow education: Methodological challenges and directions

Abstract: Research on shadow education has considerably increased in volume and has helped to improve understanding of the scale, nature, and implications of the phenomenon. However, the field is still in its infancy. Literature on shadow education reflects confusion over terms and parameters, and data suffer from challenges in securing evidence from actors who may be unwilling or unable to respond to enquiries in a clear manner. Particular care is needed in cross-national and cross-cultural comparisons. Nevertheless, the trajectory of improvement in both conceptualisation and instrumentation gives ground for confidence that shadow education will be progressively better documented and better understood.

Local autonomy, tax morale, and the shadow economy

Abstract: Policymakers often propose strict enforcement strategies to fight the shadow economy and to increase tax morale. However, there is an alternative bottom-up approach that decentralises political power to those who are close to the problems. This paper analyses the relationship with local autonomy. We use data on tax morale at the individual level and macro data on the size of the shadow economy to analyse the relevance of local autonomy and compliance in Switzerland. The findings suggest that there is a positive (negative) relationship between local autonomy and tax morale (size of the shadow economy).

Shadow Economies All Over the World: New Estimates for 162 Countries from 1999 to 2007

Abstract: This paper presents estimations of the shadow economies for 162 countries, including developing, Eastern European, Central Asian, and high-income countries over the period 1999 to 2006/2007. According to the estimations, the weighted average size of the shadow economy (as a percentage of"official"gross domestic product) in Sub-Saharan Africa is 38.4 percent; in Europe and Central Asia (mostly transition countries), it is 36.5 percent, and in high-income OECD countries, it is 13.5 percent. The authors find a clear negative trend in the size of the shadow economy: The unweighted average of the 162 countries in 1999 was 34.0 percent and in 2007 31.0 percent; hence a reduction of 3 percentage points!.The driving forces of the shadow economy are an increased burden of taxation (both direct and indirect), combined with labor market regulations and the quality of public goods and services, as well as the state of the"official"economy.

The history of policy responses to shadow education in South Korea: implications for the next cycle of policy responses

Abstract: Shadow education has been a challenge to public education in South Korea since the 1960s. Government has responded to shadow education with various types of policy responses. The assumption on the possibility of reducing the demand mechanism led the policy to eliminate competitive high stakes examinations and even prohibit participating in shadow education. However, the policy response with this assumption has not been effective. The policy responses to the problematic symptoms had been short period prescription, which were able to bring about immediate effects. South Korean experiences suggest that we need to formulate long-term policy frameworks for developing the quality of public education in responding to shadow education.

Indigenous Suicide and Colonization: The Legacy of Violence and the Necessity of Self-Determination

Abstract: Contemporary indigenous first nations psychologists have developed an alternative frame for viewing suicide that not only shifts the focus from individual-level to group-level explanations, but challenges discourses that position group-level influences as "risk factors" that can be easily subsumed within standard repertoires for suicide prevention. First nations psychologists show the violent legacy of colonization has left a dark shadow on the contemporary lives of young people, so that around the world, suicide rates for indigenous peoples are much higher than for non-indigenous peoples in the same country. These arguments, which rely on historical accounts, cannot be neatly demonstrated using empirical data, but form an important part of a self-determination movement among indigenous peoples, directly challenging unequal power relations in society as a means to seek redress for particular issues of inequity like rates of youth suicide. We present a theoretical case study and analysis of contemporary suicide among Maori youth in New Zealand. In a traditional Maori conceptualization, individual well-being is sourced and tied to the well-being of the collective cultural identity. Therefore, individual pain is inseparable from collective pain and the role of the collective becomes that of carrying individuals who are suffering. The state of kahupo or spiritual blindness (Kruger, Pitman, et al. 2004) is characterized by a loss of hope, meaning, and purpose and an enduring sense of despair. It bears the symptoms of chronic dissociation or separation of the physical from the spiritual and vice versa. We describe community empowerment practices and social policy environments that offer pathways forward from colonization towards tino rangatiratanga, or indigenous self-determination, noting significant obstacles along the way.

Appreciative Inquiry as a Shadow Process

Abstract: In this article, the relationship of Appreciative Inquiry (AI) with the shadow, defined as censored emotional and/or cognitive content (Shadow), is explored via three varieties of AI-Shadow relatio...

Regional Estimates of the Shadow Economy in Europe

Abstract: The aim of the paper is to estimate the extent of the shadow economy in the regions of the European Union. For this purpose the multiple-indicators multiple-causes approach combined with elements of spatial econometrics is implemented. The analysis shows that the shadow economy is most extensive in Eastern and Southern Europe, confirming results from previous literature. Within countries, the poorest regions tend to exhibit the highest shadow economy quotas. The smallest extent of shadow activities is obtained for the Netherlands and the United Kingdom, while in Poland the shadow economy is most extensive.

Securitization, shadow banking & financial fragility

Abstract: memorable moments of the recent 1⁄2nancial crisis involved the failures or near-failures of some of the nation’s biggest 1⁄2nancial institutions: Bear Stearns, Lehman Brothers, and aig, to name a few. Much of the subsequent policy response has been shaped by a desire either to avert such failures in the future–for example, by imposing higher capital requirements on systemically important 1⁄2nancial 1⁄2rms–or to lessen the adverse consequences of failures if they do occur–for example, by improving the methods available to resolve large institutions in distress. Yet from the perspective of credit creation and impact on the rest of the economy, one of the most damaging aspects of the crisis was not just the problems of these big 1⁄2rms, but also the collapse of an entire market, namely the market for asset-backed securities (abs). For example, the market for so-called traditional or consumer abs–those based on credit-card, auto, and student loans–averaged between $50 and $70 billion of new issuance per quarter in the years leading up to the crisis. (The total issuance for calendar year 2007 was $238 billion.) However, in the last quarter of 2008, following the bankruptcy of Lehman, total issues in this category fell to slightly more than $2 billion. Given that banks were suffering their own problems and were not easily able to step into the breach, the disappearance of this market represented a major contraction in the supply of credit to consumers, and may well have played a central role in the steep drop in aggregate consumption that occurred at this time. The traditional abs market only began to rebound in mid-2009, with the implementation of the Federal Reserve’s Term Asset-Backed Lending Facility, or talf, which made tens of billions of dollars of Federal Reserve loans available on attractive terms to investors seeking to buy newly issued consumer abs. In what follows, I explore the role that the abs market plays in the broader process of credit creation, focusing on four sets of issues. First, I describe how the market works: how pools of loans (for example, mortgages or credit-card and auto loans) are packaged and structured into abs and how investors such as hedge funds, pension funds, and broker-dealer 1⁄2rms 1⁄2nance the acquisition of these abs. Second, I outline the economic forces that drive securitization; these include both an ef1⁄2ciency-enhancing element of risk-sharing and a less Jeremy C. Stein

Do the “Savage Origins” of Tattoos Cast a Prejudicial Shadow on Contemporary Tattooed Individuals?

Abstract: We investigated whether increases in tattooing rates and designs have eradicated or altered traditional delinquent tattooing stereotypes. We tested the perceived suitability of tattooed and non-tattooed individuals for 2 different jobs. Affective evaluations mediated judgments of job suitability, with those displaying traditional tattoos being rated as less suitable for employment than those who were not tattooed and those displaying contemporary tattoos. Those with a contemporary tattoo were judged in the same manner as those who were not tattooed (even by observers who neither had a tattoo nor were considering getting one). These results suggest that the savage associations of tattooing continue for some, but suggest that for other tattoo enthusiasts, a new stereotype has emerged reflecting a shift toward respectability.

The changing nature of the OECD shadow economy

Abstract: Traditionally, the presence of the shadow economy (SE) has been associated, mainly and positively, with taxation. Recently, some authors have suggested that the SE may be also linked to the institutional setting (efficiency of the bureaucracy, regulations, corruption, etc.) so that just two stable equilibria are possible. In the “good” one, there is a small hidden sector, large fiscal revenues and honest/appreciated institutions. The other, “bad”, equilibrium is the opposite. Unlike the traditional approach, therefore, the recent literature argues that the tax burden and SE can be negatively correlated. Examining the links between these variables in relatively uncorrupt systems, this paper reconciles the two views. Theoretically, it claims that many different good equilibria can emerge whereby SE and its determinants are linked in complex and different ways. For instance, taxation and SE can go hand-in-hand, even taking into account the institutional framework. Empirical evidence for OECD countries supports both the model and the changing nature of the SE.

Exploring the potential of shadow accounts in problematising institutional conduct

Abstract: Within the extensive social and environmental accounting literature (Thomson 2007) there are reports of a particular form of social accounting produced by external organisations, including campaigning NGOs,1 on their representation of the social and environmental impacts of others (see, for example, Moerman and Van der Laan 2005; Gallhofer et al. 2006; Dey 2007). The intended audience for these reports was not simply the organisation associated with the problematic impacts, but also included political institutions, the media, and sections of the general public (Gray 1997; Harte and Owen 1987; Medawar 1976; Cooper et al. 2005; Collison et al. 2007). Given that the reports attempted to challenge, problematise, and de-legitimate those currently in a dominant position of power, implicitly we understand that these accounts will be prepared by, or on behalf of, less powerful social groups. They may therefore be thought of as an “accounting for the other, by the other” (cf. Shearer 2002), or more concisely, “shadow accounts” (Dey 2007). In this chapter, we consider the role of shadow accounts in systematically creating alterative representations, new visibilities, and knowledge of existing situations in order to problematise, act as a catalyst for intervention, and typically represent the views of oppressed social groups or ecological systems.

Regulating the Shadow Banking System

Abstract: The “shadow” banking system played a major role in the financial crisis, but was not a central focus of the recent Dodd-Frank Law and thus remains largely unregulated. This paper proposes principles for the regulation of shadow banking and describes a specific proposal to implement those principles. We first document the rise of shadow banking over the last three decades, helped by regulatory and legal changes that gave advantages to three main institutions of shadow banking: money-market mutual funds (MMMFs) to capture retail deposits from traditional banks, securitization to move assets of traditional banks off their balance sheets, and repurchase agreements (“repo”) that facilitated the use of securitized bonds in financial transactions as a form of money. A central idea of this paper is that the evolution of a bankruptcy “safe harbor” for repo has been a crucial feature in the growth and efficiency of shadow banking, and so regulators can use access to this safe harbor as the lever to enforce new rules. As for the rules themselves, history has demonstrated two successful methods for the regulation of privately created money: strict guidelines on collateral (used to stabilize national bank notes in the 19th century), and government-guaranteed insurance (used to stabilize demand deposits in the 20th century). We propose the use of insurance for MMMFs combined with strict guidelines on collateral for both securitization and repo as the best approach for shadow banking, with regulatory control established by chartering new forms of narrow banks for MMMFs and securitization and using the bankruptcy safe harbor to incent compliance on repo.

Does policy matter in shadow education spending? Revisiting the effects of the high school equalization policy in South Korea

Abstract: In 1972, the South Korean government proposed the high school equalization policy (HSEP) to eliminate high-stakes exams and introduce random school assignment to high school entrance. This policy was intended to reduce a financial burden imposed on families due to the costs of children’s shadow education. Since its first implementation in major cities in 1974, the HSEP has been increasingly expanded to many regions across South Korea. Yet little known is about whether the HSEP has achieved its policy goal in terms of decreasing the demand for shadow education. Using data from a longitudinal survey of a nationally representative sample of South Korean seventh graders, this study assesses the extent to which the HSEP makes a difference in changes in household expenditures on shadow education during the middle school (grades 7–9). Propensity score matching methods are used to remove selection bias and test the heterogeneity of the effects of the HSEP. Results show small effects for the HSEP in reducing the financial burden of shadow education spending on families, particularly for lower income families. The findings suggest that the government intervention by reducing disparities among schools and competition for entering a particular school makes a difference in shadow education spending.

The Undiscovered Self: With Symbols and the Interpretation of Dreams

Abstract: Together for the first time in one paperback volume are two of Jung's major late works, in the version published in The Collected Works of C. G. Jung, as rendered by Jung's official translator. "The Undiscovered Self" (1957) integrates many of Jung's lifelong social and psychological concerns and addresses the uneasy relation between the individual and mass society. The survival of civilization, he maintains, depends on individual awareness of both the conscious and unconscious aspects of the human psyche. The exploration of the unconscious, in particular, leads to self-knowledge and with it recognition of the duality of human natureits potential for evil as well as for good. Jung believes that it is this self-knowledge that enables the individual to resist the collective power of mass society and the state and to cope with their possible threats. Jung's reflections on self-knowledge and the exploration of the unconscious carry over into his essay "Symbols and the Interpretation of Dreams, " completed shortly before his death in 1961. (It is the original version of his introduction to the symposium Man and His Symbols, conceived as a popular presentation of Jungian ideas.) Describing dreams as communications from the unconscious--as expressions of aspects of the individual that have been neglected or unrealized--Jung explains how the symbols that occur in dreams compensate for repressed emotions and intuitions. In a world dehumanized, in Jung's view, by scientific "progress" and the loss of emotional participation in natural events, symbols recall our original nature, its instincts and peculiar way of thinking. This essay brings together Jung's fully evolved thoughts on the analysis ofdreams and the healing of the rift between consciousness and the unconscious, in the context of his system of psychology.