THE ECONOMICS OF MONEY LAUNDERING

Patrycja Chodnicka
Additional contact information
Patrycja Chodnicka: University of Warsaw

Oeconomia Copernicana, 2011, vol. 2, issue 4, 73-95

Abstract: In the paper was taken problem of money laundering in respect of receiving income and incurring expenses. It was looked at economy as whole and individual entities that are households, companies, government and foreign countries which exercising significant influence on particular government decisions. In this purpose was characterized and researched problem of legalizing funds generated by illegal activities by using two - sector equilibrium model. Model is based on activities first two of four mentioned participants. In this model it was used two sectors of economy: legal and illegal. For better understanding problem, model was adapted to polish economy and verified. As a result were received factors which had deciding influence on quantity of money laundering. Offering services and legalization funds generated by illegal activities has got negative correlation with increasing sanctions which are applying in case of detection and transactional costs. Optimal quantity of money laundering depends on workforce costs and prices both goods becoming form legal and illegal economy. Moreover it was drawn attention to bigger effectiveness of foreign cooperation than implementation of national anti-money laundering policy.

Keywords: money laundering; two-sector equilibrium model; illegal economy (search for similar items in EconPapers)
JEL-codes: D82 G28 K42 L51 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.12775/OeC.2011.019 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pes:ieroec:v:2:y:2011:i:4:p:73-95

Access Statistics for this article

Oeconomia Copernicana is currently edited by Adam P. Balcerzak and Michal Moszynski

More articles in Oeconomia Copernicana from Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Adam P. Balcerzak ( this e-mail address is bad, please contact ).