THE SHADOW ECONOMY IN OECD AND EU ACCESSION COUNTRIES:THE IMPACT OF INSTITUTIONS, LIBERALIZATION, TAXATION AND REGULATION

Dominik Enste

The IUP Journal of Public Finance, 2006, vol. IV, issue 4, 7-21

Abstract: Tax evasion, illicit work and social security fraud are quite common. Most governments try to fight this deviant behavior by punitive measures. But recent empirical data for Germany reveals that, in contrast to standard economic theory, this line of approach is expensive, inefficient and unsuccessful. Instead, governments have to change institutions (e.g., tax system) and regulations. The regression analysis shows that the increasing burden of taxation and social security contributions, along with regulations and the poor quality of institutions are the elementary causes for the rise of the shadow economy, especially in OECD countries. For transition countries, multivariate analysis provides evidence for the significant influence of corruption, economic freedom and the quality of institutions upon the size of their shadow economies.

Date: 2006
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:icf:icfjpf:v:04:y:2006:i:4:p:7-21

Access Statistics for this article

More articles in The IUP Journal of Public Finance from IUP Publications
Bibliographic data for series maintained by G R K Murty ().