Recent findings in Economic Psychology on the thinking and judgment of economic laymen can help to improve economic policy advice. First, based on psychological theories and empirical findings, the notion of the Homo oeconomicus is challenged. The economic situation is judged by laymen using...

The growing shadow economy in Germany is a challenge to the welfare state and economic policy. The burden of taxation and social security contributions combined with rising state regulatory activities are the main causes for the increase in the shadow economy. The consequences are ambivalent,...