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Religion and the Shadow Economy

Author

Listed:
  • Friedrich Schneider
  • Katharina Linsbauer
  • Friedrich Heinemann

Abstract

type="main"> Religion is increasingly acknowledged to be a cultural dimension which affects economic outcomes in different regards. This contribution focuses on the possible impact of religion's different dimensions, the overall degree of religiosity, the specific impact of different religions, religious competition and the proximity between religion and the state, on the shadow economy. The empirical test matches the largest available cross-section on the size of the shadow economy with numerous religious indicators. General religiosity seems to increase the shadow economy. Moreover, robust differences emerge across religions. Furthermore, a closer proximity between state and religion is typical for smaller shadow economies.

Suggested Citation

  • Friedrich Schneider & Katharina Linsbauer & Friedrich Heinemann, 2015. "Religion and the Shadow Economy," Kyklos, Wiley Blackwell, vol. 68(1), pages 111-141, February.
    • Handle: RePEc:bla:kyklos:v:68:y:2015:i:1:p:111-141
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    More about this item

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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