Dreher, Axel; Kotsogiannis, Christos; McCorriston, Steve - Business School, University of Exeter - 2005
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 …