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WHAT DO WE KNOW ABOUT THE SIZE OF THE UNDERGROUND ECONOMY IN ITALY BEYOND THE "COMMON WISDOM"? SOME EMPIRICALLY TESTED PROPOSITIONS

Laura Castellucci and Maurizio Bovi ()

Departmental Working Papers from Tor Vergata University, CEIS

Abstract: It is commonly thought that the underground economy is larger in Italy than in most other developed countries and that it is growing. Using several methods of measuring it we found no sound support for such view but rather that it fluctuates around a stable mean. We found confirmation of the widespread view of a larger underground economy in the southern regions of the country than in the center-north. We moreover found that the differences between the south and the center-north are not limited to its size but extend to its nature and motivations, thus reaffirming the dualism of the country.

Date: 1999-06
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Persistent link: http://EconPapers.repec.org/RePEc:rtv:ceiswp:120

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