corruption. It shows that an improvement in institutional quality reduces the shadow economy and a?ects the corruption market …—by means of Structural Equation Modelling that treats the shadow economy and the corruption market as latent variables …This paper analyzes a simple model that captures the relationship between institutional quality, the shadow economy and …

The causes and consequences of corruption have attracted much attention in recent years by both academics and policy … makers. Central in the discussion on the impact of corruption are perception-based indices. Recent research has shown that … perceived corruption might not be a good indicator of actual corruption in a country. In this paper, we employ a structural …