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Participation in the Black Economy: Theory

In: Tax Evasion and the Black Economy

Author

Listed:
  • David J. Pyle

    (University of Leicester)

Abstract

Chapters 2–4 considered in detail the question ‘How large is the black economy?’ As we saw that is not an easy question to answer. Indeed, some people might argue quite legitimately that it is impossible to answer that question. This has not deterred some economists from trying to do so and they have developed a whole range of techniques aimed at revealing the extent of such concealed economic activity. These techniques, and some of the studies using them, were extensively reviewed in Chapters 2, 3 and 4. It is clear from that review that there are significant weaknesses with all the methods that have so far been devised. However, despite their imperfections these studies do constitute possibly the best evidence of the existence and growth of irregular economic activity. As Cowell (1985b) has claimed, ‘there is sufficient evidence to suggest that tax evasion is quantitatively a non-neglible problem in advanced Western-style economies’ (p. 163).

Suggested Citation

  • David J. Pyle, 1989. "Participation in the Black Economy: Theory," Palgrave Macmillan Books, in: Tax Evasion and the Black Economy, chapter 5, pages 86-110, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-08488-3_5
    DOI: 10.1007/978-1-349-08488-3_5
    as

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