Summary This paper investigates the relationship between the underground economy and tax evasion through a microeconomic model based on portfolio theory. The underground economy is assumed to be the result of bureaucracy, excessive regulation, and tax evasion. The main conclusion of the analysis...

Summary This paper presents through hypothesis testing extensive statistical evidence concerning the structural implications of the underground economy in post-war Greece. The underground economy is found to alter the structure of the supply-side of the economy, but the evidence with regard to...