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Causes and consequences of underground economy

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  • Mara, Eugenia-Ramona

Abstract

In this endeavor an attempt has been made to investigate the major causes and factors of influence of the underground economy. Our analysis is based on the study of tax payer behavior and taxation system pattern. The paper examines how social institutions and government policies affect underground economy. All these factors have an important impact on the level and size of underground economy and determine the consequences of this phenomenon.

Suggested Citation

  • Mara, Eugenia-Ramona, 2011. "Causes and consequences of underground economy," MPRA Paper 36438, University Library of Munich, Germany, revised 2011.
    • Handle: RePEc:pra:mprapa:36438
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    File URL: https://mpra.ub.uni-muenchen.de/36438/1/MPRA_paper_36438.pdf
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    References listed on IDEAS

    as
    1. Dominik Enste & Friedrich Schneider, 2002. "Hiding in the Shadows; The Growth of the Underground Economy," IMF Economic Issues 30, International Monetary Fund.
    2. Roberto Dell'Anno, 2007. "The Shadow Economy in Portugal: An Analysis with the Mimic Approach," Journal of Applied Economics, Taylor & Francis Journals, vol. 10(2), pages 253-277, November.
    3. Mr. Friedrich Schneider & Dominik Enste, 2002. "Hiding in the Shadows: The Growth of the Underground Economy," IMF Economic Issues 2002/001, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Sahnoun, Marwa & Abdennadher, Chokri, 2019. "The nexus between unemployment rate and shadow economy: A comparative analysis of developed and developing countries using a simultaneous-equation model," Economics Discussion Papers 2019-30, Kiel Institute for the World Economy (IfW Kiel).
    2. Krammer, Sorin M.S. & Strange, Roger & Lashitew, Addisu, 2018. "The export performance of emerging economy firms: The influence of firm capabilities and institutional environments," International Business Review, Elsevier, vol. 27(1), pages 218-230.
    3. Fenyvesi, Éva & Vágány, Judit Bernadett, 2020. "A rejtett gazdaság néhány területének szisztematikus szakirodalmi áttekintése [A systematic literature review of some areas of the hidden economy]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 512-532.

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    More about this item

    Keywords

    underground economy; tax burden; corruption; taxation system;
    All these keywords.

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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