The Shadow Economy

Schneider, Friedrich; Enste, Dominik H.

doi:10.1017/cbo9780511493591

Cited by 105 publications

(62 citation statements)

References 109 publications

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“…Note that since the value function V i (K, h) has the properties V i (0, 0) = 0 and strict concavity, holding the boundary condition (5) guarantees that the transversality conditions are satisfied. Using equation (11) and lemmas 1-3, the value function is calculated by …”

Section: Appendix C Proof Of Propositionmentioning

confidence: 99%

The role of the private sector under insecure property rights

Tenryu

2017

Int Rev Econ

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Voracious behavior is one of the excess uses of the commons. It is known that the voracity effect can be observed in the economy with common and private capital. We explore another cause of voracious behavior and investigate the effects of voracious behavior on the economy. For this purpose, we introduce a new direction of capital flow.A government mandates that all groups invest their private capital in the common sector to mitigate the effects of excess use of the commons. We show theoretically that there is no standard voracity effect in the sense that Tornell and Lane (1999) define and that a group's equilibrium consumption strategy is the Markov control-state complementarity. We observe numerically that an increase in the contribution of the private sector into the common sector has a negative effect on growth. This implies that the policy for preservation of the commons leads to the harmful effect on the economy.

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Section: Appendix C Proof Of Propositionmentioning

confidence: 99%

The role of the private sector under insecure property rights

Tenryu

2017

Int Rev Econ

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“…Numerous studies have revealed how the prevalence of the informal economy varies not only cross-nationally (ILO, 2012;Schneider and Williams, 2013) but also locally and regionally (Kesteloot and Meert, 1999) and by employment status (Slavnic, 2010;Taiwo, 2013), age (Pedersen, 2003), gender (ILO, 2013 and income level (Barbour and Llanes, 2013;Williams, 2009). The outcome has been a more contextualised understanding which recognises how the informal economy can be large and growing in some populations, but smaller and declining in others (Pfau-Effinger, 2009;Williams and Horodnic, 2015).…”

Section: Explaining the Informal Economy: An Institutional Perspectivementioning

confidence: 99%

“…Secondly, 'neo-liberal' theory claims that the informal economy results from high taxes and state interference and thus that reducing taxes and the level of state interference in work and welfare is the way forward (De Soto, 1989;London and Hart, 2004;Nwabuzor, 2005;Schneider and Williams, 2013). Viewed through this lens, the degree of institutional asymmetry will be greater in those nations with higher taxes and levels of state interference in work and welfare systems.…”

Section: Explaining the Informal Economy: An Institutional Perspectivementioning

confidence: 99%

“…Reflecting the widespread consensus, the informal economy is here defined as paid activities not declared to the authorities for tax, social security and/or labour law purposes when they should be but which are otherwise legal in all respects (European Commission, 2007;OECD, 2012;Schneider, 2008;Schneider and Williams, 2013;Williams et al, 2012). The only illegal aspect about the informal economy therefore, is that these paid activities are not declared for tax, social security and/or labour law purposes when they should be.…”

Section: Introductionmentioning

confidence: 99%

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Explaining the Prevalence of the Informal Economy in the Baltics: an Institutional Asymmetry Perspective

Williams

Horodnic

2015

ESR&P

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Reporting a 2013 Eurobarometer survey of participation in the informal economy across eight Baltic countries, this paper tentatively explains the informal economy from an institutional perspective as associated with the asymmetry between the codified laws and regulations of the formal institutions (state morality) and the norms, values and beliefs of citizens (civic morality). Identifying that this non-alignment of civic morality with the formal rules is more acute when there is greater poverty and inequality, less effective redistribution and lower levels of state intervention in the labour market and welfare, the implications for theorising and tackling the informal economy are then discussed.

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“…Here, we can mention the names of A. Bretteville-Jensen and E. Biørn (2004) [1], A. Robson (2012) [2], F. Schneider (2008) [3] and B. Brown (2006) [4].…”

Section: Introduction and Brief Literature Reviewmentioning

confidence: 99%

The share of drug trafficking in Kazakhstan’s GDP: methods for evaluation

Azatbek¹,

Panzabekova²,

Bekenova³

et al. 2017

EA-XXI

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Introduction. In Kazakhstan, no systematic work is carried out to collect data and evaluate illicit activities in the form in which it could be compared with the main macroeconomic indicators. The purpose of the article, therefore, is to examines methods for evaluation of the share of drug trafficking in Kazakhstan's GDP and GRP. The methodology used in the research is based on the principles of the System of National Accounts. Results. Based on international experience and practice of applying the evaluation of illicit activities according to the recommendations of Eurostat, the authors carry out an estimation of the share of illicit traffic in narcotic drugs in the economy of Kazakhstan in 2011-2016 as a whole and by regions. The most common drugs in Kazakhstan are heroin, cannabinoids (marijuana, hashish) and opiates. Thus, the analysis and evaluation were carried out for these types of drugs. Base at the proposed formulas, the calculations were made to evaluate the use of each drug in Kazakhstan, the volume of imports and domestic production, trade margins and gross value added (GVA) by activities related to its spread. Conclusion. The calculations make it possible to estimate the real volumes of drug trafficking in Kazakhstan's GRP and GDP. The evaluation of the share of illicit drug trafficking in Kazakhstan's GDP has shown a declining trend in recent years: the share of GVA regarding GDP in 2016 amounted to KZT 199,306.5 million (USD 596.726 million), which was 0.58%. However, heroin consumption is the largest one, due to its prevalence among consumers. Despite the lack of production of heroin on the territory of Kazakhstan, its transit and distribution remains stable.

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The Shadow Economy

Cited by 105 publications

References 109 publications

The role of the private sector under insecure property rights

The role of the private sector under insecure property rights

Explaining the Prevalence of the Informal Economy in the Baltics: an Institutional Asymmetry Perspective

The share of drug trafficking in Kazakhstan’s GDP: methods for evaluation

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