Journal ArticleDOI
Survey on the shadow economy and undeclared earnings in oecd countries
Lars P. Feld,Friedrich Schneider +1 more
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In most OECD countries, the policy instrument of choice to prevent people from working in the shadows has been deterrence as discussed by the authors, but the empirical evidence on its success is weak: tax policies and state deregulation appear to work much better.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.read more
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New Estimates for the Shadow Economies all over the World
TL;DR: In this article, the authors present estimations of shadow economies for 162 countries, including developing, Eastern European, Central Asian and high income OECD countries over 1999 to 2006/2007, and 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.
Journal ArticleDOI
Intrinsic honesty and the prevalence of rule violations across societies
TL;DR: An index of the ‘prevalence of rule violations’ (PRV) based on country-level data from the year 2003 of corruption, tax evasion and fraudulent politics is developed and individual intrinsic honesty is found to be stronger in the subject pools of low PRV countries than those of highPRV countries.
Journal ArticleDOI
Shadow economies around the world: novel insights, accepted knowledge, and new estimates
TL;DR: In this paper, the impact of enforcement on the shadow economy was studied using a MIMIC model and the authors found that a higher share of sub-national government employment and the aspiration of public employees to follow rules significantly deter shadow economic activities.
Journal ArticleDOI
Powerful authorities and trusting citizens: The Slippery Slope Framework and tax compliance in Italy
TL;DR: In this paper, a thorough investigation of the nature of power (coercive versus legitimate) within the theoretical framework of tax compliance is proposed to shed light on the ambiguous results and to clarify the complex relation between power and trust.
Posted Content
The shadow economy and work in the shadow: What do we (not) know?
TL;DR: The most influential factors on the shadow economy and/or shadow labor force are tax policies and state regulation, which, if they rise, increase both as mentioned in this paper, and the discussion of the recent micro studies underline that economic opportunities, the overall burden of the state (taxes and regulations), the general situation on the labor market, and unemployment are crucial for an understanding of the dynamics of shadow economy.
References
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Journal ArticleDOI
Income tax evasion: a theoretical analysis
TL;DR: In this paper, an analysis of the individual taxpayer's decision on whether and to what extent to avoid taxes by deliberate underreporting is presented, based on a simple static model where this decision is the only one with which the individual is concerned, so that we ignore the interrelationships that probably exist with other types of economic choices.
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.
Book
Not Just for the Money: An Economic Theory of Personal Motivation
TL;DR: In this article, a wide-ranging discussion of personal movitation that opens out traditional eonomics to provide a more mature view of individuals as being sensitive to private and moral motives as well as market incentives is provided.