The impact of tax morale and institutional quality on the shadow economy

Benno Torgler () and Friedrich Georg Schneider ()

Journal of Economic Psychology, 2009, vol. 30, issue 2, pages 228-245

Abstract: This paper uses a multivariate analysis to examine how countries' tax morale and institutional quality affect the shadow economy. The literature strongly emphasizes the quantitative importance of these factors in understanding the level of and changes in the shadow economy. Newly available data sources offer the unique opportunity to further illuminate a topic that has received increased attention. After controlling for a variety of potential factors, we find strong support that a higher tax morale and a higher institutional quality lead to a smaller shadow economy.

Keywords: Shadow; economy; Tax; morale; Institutional; quality; Government; intervention; Corruption (search for similar items in EconPapers)
Date: 2009

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Related works:
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)
Working Paper: The Impact of Tax Morale and Institutional Quality on the Shadow Economy (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:eee:joepsy:v:30:y:2009:i:2:p:228-245

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