The Impact of Tax Morale and Institutional Quality on the Shadow Economy

Benno Torgler () and Friedrich Schneider ()
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Benno Torgler: Queensland University of Technology

No 2541, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper analyses how tax morale and countries’ institutional quality affect the shadow economy, controlling in a multivariate analysis for a variety of potential factors. The literature strongly emphasizes the quantitative importance of these factors to understand the level and changes of shadow economy. Relatively new available data sources offer the unique opportunity to shed more light in the understanding of a topic that has received an increased attention. We find strong support that a higher tax morale and a higher institutional quality lead to a smaller shadow economy.

Keywords: institutional quality; tax morale; shadow economy; government intervention; corruption (search for similar items in EconPapers)
JEL-codes: D73 D78 H2 H26 O17 O5 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2007-01
New Economics Papers: this item is included in nep-dev and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (125)

Published - published in: Journal of Economic Psychology, 2009, 30 (2), 228-245

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Related works:
Journal Article: The impact of tax morale and institutional quality on the shadow economy (2009)
Working Paper: The Impact of Tax Morale and Institutional Quality on the Shadow Economy (2007)
Working Paper: The Impact of Tax Morale and Institutional Quality on the Shadow Economy (2007)
Working Paper: The impact of tax morale and institutional quality on the shadow economy (2007)
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