The Shadow Economy: An International Survey

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Cambridge University Press, Feb 14, 2013 - Business & Economics - 216 pages
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Illicit work, social security fraud, economic crime and other shadow economy activities are fast becoming an international problem. This second edition uses new data to reassess currency demand and the model approach to estimate the size of the shadow economy in seventy-six developing, transition and OECD countries. This updated edition argues that during the 2000s the average size of a shadow economy varied from 19% of GDP for OECDs, to 30% for transition countries and 45% for developing countries. It examines the causes and consequences of this development using an integrated approach explaining deviant behavior, which combines findings from economic, sociological and psychological research. The authors suggest that increasing taxation, social security contributions, rising state regulatory activities and the decline of the tax morale are all driving forces behind this growth and they propose a reform of state public institutions in order to improve the dynamics of the official economy.
 

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Contents

a challenge for economic and social policy
1
Defining the shadow economy
5
Methods to estimate the size of the shadow economy
16
Size of shadow economies around the world
31
The size of the shadoweconomy labour force
47
An integrated approach to explain deviant behaviour
64
leisure time
82
Analysing the causes and measures of economic policy
117
Effects of the increasing shadow economy
142
The twopillar strategy
167
Conclusion and outlook
180
References
184
Index
208
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About the author (2013)

Friedrich Schneider is Professor of Economics of the Johannes Kepler University of Linz, Austria. He was the European editor of Public Choice from 1991 to 2004 and he has published extensively in leading economic journals including The Quarterly Journal of Economics, The American Economic Review, The Economic Journal and Kyklos.

Dominik H. Enste is Head of the Department of Institutional and Behavioral Economics at the Cologne Institute for Economic Research. He is also Professor of Economics and Ethical and Behavioral Economics at the University of Applied Science and Lecturer at the University of Cologne. His main research focuses on institutional and ethical economics/business ethics and behavioral economics. He has published several books and articles, in publications such as The Journal of Economic Literature and Constitutional Political Economy.

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