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

Friedrich Schneider () and Benno Torgler ()
Additional contact information
Benno Torgler: University of California, Berkeley, School of Law

No 2007-02, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: This paper analyses how tax morale and countries’ institutional quality affect the shadow economy, controlling in a multivariate analysis for a variety of potential factors. The literature strongly emphasizes the quantitative importance of these factors to understand the level and changes of shadow economy. Relatively new available data sources offer the unique opportunity to shed more light in the understanding of a topic that has received an increased attention. 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)
JEL-codes: D73 D78 H2 H26 O17 O5 (search for similar items in EconPapers)
Date: 2007-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (122)

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http://www.econ.jku.at/papers/2007/wp0702.pdf (application/pdf)

Related works:
Journal Article: The impact of tax morale and institutional quality on the shadow economy (2009)
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: https://EconPapers.repec.org/RePEc:jku:econwp:2007_02

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