The Influence of Public Institutions on the Shadow Economy: An Empirical Investigation for OECD Countries
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Friedrich Schneider
Abstract
The size and development of the shadow economy of 21 OECD countries is estimated, using the MIMIC estimation procedure. The analysis finds that an increased burden of taxation and social security payments, combined with intensive labor market regulation, quality of state institutions, and tax morale, are the driving forces for the shadow economy. The public institution of federalism has no statistically significant effect on the shadow economy. Finally, on the one side, incentive-oriented policy means are suggested so that any “black” value added can be transformed into official value added, and on the other side, it is important to have public institutions which work efficiently and act as a constraint for selfish politicians.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Artikel in diesem Heft
- Article
- Introduction: Ex Uno Plures. Welfare Without Illusion
- Polycentric Polity: Genuine vs. Spurious Federalism
- Fiscal Equity In Federal Systems
- Federalism, Budget Deficits and Public Debt: On the Reform of Germany's Fiscal Constitution
- How Federalism Protects Future Generations from Today's Public Debts
- Raising vs. Leveling in the Social Organization of Welfare
- The Influence of Public Institutions on the Shadow Economy: An Empirical Investigation for OECD Countries
- Fiscal Federalism at the Ballot Box: The Relevance of Expressive Voting
- Federalism as an Effective Antidote to Terrorism
Artikel in diesem Heft
- Article
- Introduction: Ex Uno Plures. Welfare Without Illusion
- Polycentric Polity: Genuine vs. Spurious Federalism
- Fiscal Equity In Federal Systems
- Federalism, Budget Deficits and Public Debt: On the Reform of Germany's Fiscal Constitution
- How Federalism Protects Future Generations from Today's Public Debts
- Raising vs. Leveling in the Social Organization of Welfare
- The Influence of Public Institutions on the Shadow Economy: An Empirical Investigation for OECD Countries
- Fiscal Federalism at the Ballot Box: The Relevance of Expressive Voting
- Federalism as an Effective Antidote to Terrorism
