This paper analyzes the influence of the shadow economy on corruption and vice versa. We hypothesize that corruption … that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. We … also find that stricter regulations increase both corruption and the shadow economy. …

episode took a very heavy toll on the real economy, we argue that this was not a surprising outcome. In particular, historical …

We analyze how adding the shadow economy to official output figures affects technical efficiency. We find that this …