The Shadow Economy

By Friedrich Schneider, D. Enste. Social Science Research Network, 2013

448 citations recorded by the source corpus.

Illicit work, social security fraud, economic crime, and other shadow economy activities are fast becoming an international problem. This second edition uses new data to reassess currency demand and the model approach to estimate the size of the shadow economy in 151 developing, transition, andOECD countries. This updated edition argues that during the 2000s the average size of the shadow economy varied from 19 per cent of GDP for OECD countries, to 30 per cent for transition countries, to 45 per cent for developing countries. It examines the causes and consequences of this development using an integrated approach to explain deviant behaviour that combines findings from economic, sociological, and psychological research. The authors suggest that increasing taxation and social security contributions, rising state regulatory activities, and the decline of the tax morale are all driving forces behind this growth, and they propose a reform of state public institutions in order to improve the dynamics of the official economy.

Subfields: Demography, Genetics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/d484c39bc87387f6019f91005d432152752277d3

Citations in the corpus

• Shadow Economies in Highly Developed OECD Countries: What are the Driving Forces? (2012, unknown): “For the strengths and weaknesses of the various methods see e.g. Bhattacharyya (1999), Breusch (2005), Feige (1989), Feld and Schneider (2010), Giles (1999), Schneider (2003, 2005, 2011), Schneider and Enste (2000), Tanzi (1999), Thomas (1999).”
• The Influence of Public Institutions on the Shadow Economy: An Empirical Investigation for OECD Countries (2010, unknown): “3 This definition is taken from Dell’Anno (2003), Dell’Anno and Schneider (2004), and Feige (1989); see also Thomas (1999), and Fleming et al. (2000).”
• Transport Infrastructure Development, Public Performance and Long-Run Economic Growth: A Case Study for the Eu-28 Countries (2018, unknown): “In line with this, according to Schneider [117] and Schneider and Williams [118] it is noticed that shadow economy is an important point in the analysis of the policy implications and highlight that the higher (lower) the unemployment quota (GDP growth), the higher the incentive to work in the shado”
• Estimating the Size of the Shadow Economy: Methods, Problems and Open Questions (2013, unknown): “2) See Frey and Pommerehne (1984), Thomas (1992), Loayza (1996), Pozo (1996), Lippert and Walker (1997), Schneider (1994a, 1994b, 1997, 1998a, 2003, 2005, 2011), Johnson, Kaufmann, and Shleifer (1997), Johnson, Kaufmann and Zoido-Lobatón (1998a), Belev (2003), Gerxhani (2003), and Pedersen (2003).”
• Size and Development of the Shadow Economies of 157 Countries Worldwide: Updated and New Measures from 1999 to 2013 (2016, unknown): “See e.g. Schneider and Enste (2002), Feld and Schneider (2010), Schneider, Büehn and Montenegro (2010), Schneider (2010, 2015), Schneider and Williams (2013), Williams and Schneider (2016).”
• Corruption and the shadow economy: like oil and vinegar, like water and fire? (2011, unknown): “5See Thomas (1992), Schneider (1986, 1997, 2004, 2005), Johnson et al. (1998a, 1998b), Tanzi (1999), Giles et al. (2002), and Dell’Anno and Schneider (2003).”