Do disease epidemics force economic activity underground? International evidence
Aziz N. Berdiev,
Rajeev Goel and
Contemporary Economic Policy, 2022, vol. 40, issue 2, 263-282
This article studies the impact of disease epidemics on the worldwide prevalence of the shadow or the underground economy. The informal sector has low entry barriers and provides an easy short‐term option for the supply of goods and services during epidemics when traditional supply lines are cut or strained. Furthermore, the enforcement resources might be directed elsewhere during epidemics, lowering the expected costs of shadow operations. Using data for over 125 nations, we find that the incidence of epidemics positively and significantly contributes to the spread of the underground sector. These findings withstand a series of robustness checks.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: International Disease Epidemics and the Shadow Economy (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:coecpo:v:40:y:2022:i:2:p:263-282
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1074-3529
Access Statistics for this article
Contemporary Economic Policy is currently edited by Brad R. Humphreys
More articles in Contemporary Economic Policy from Western Economic Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().