This paper provides a long term analysis of the determinants of the shadow economy. Using data for the United States over the years 1870–2014 we examine economic and political factors driving the underground sector. Results show that among the economic factors, greater economic prosperity...

Recent literature on tax evasion emphasizes the importance of moral considerations to explain compliance behavior. As a consequence scholars aim to identify factors that shape this so-called tax morale. However, the causal link between tax morale and actual compliance behavior is not established...

Recent literature on tax evasion emphasizes the importance of moral considerations to explain compliance behavior. As a consequence scholars aim to identify factors that shape this so-called tax morale. However, the causal link between tax morale and actual compliance behavior is not established...

Not only has the shadow economy obviously been growing much more rapidly than the official economy in the Western industrialised countries, it also appears to have a growth cycle of its own, running counter to the official economy's growth cycle. This raises a number of important questions for...

We re-examine the size of the underground economy in the U.S. between 1972 and 2006, after properly adjusting for several statistical issues relating to its estimation. The dynamic error-correction-based currency demand approach confirms that income tax rates have no contemporaneous effect on...

In the present paper an empirical analysis will point out that shadow economy tends to push up house prices, distorting real estate market. The sample covers EU, Japan and The United States. Data are taken from OECD and (Schneider et al., 2010); (Schneider, 2013). The elaboration of these panel...