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We analyze how adding the shadow economy to official output figures affects technical efficiency. We find that this only slightly affects the ranking of efficiency scores, but increases average efficiency. Our results are robust to the functional form of the production technology and the...
Persistent link: https://www.econbiz.de/10010294534
This paper analyses how tax morale and countries’ institutional quality affect the shadow economy, controlling in a multivariate analysis for a variety of potential factors. The literature strongly emphasizes the quantitative importance of these factors to understand the level and changes of...
Persistent link: https://www.econbiz.de/10010294508
and shadow economy are substitutes in high income countries while they are complements in low income countries. The … that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. We …
Persistent link: https://www.econbiz.de/10010294540
This paper analyses how governance or institutional quality and tax morale affect the shadow economy, using an international country panel and also within country data. The literature strongly emphasizes the quantitative importance of these factors to understand the level and changes of shadow...
Persistent link: https://www.econbiz.de/10010294548
We construct and estimate a unified model combining three of the main sources of cross-country income disparities …, costly adoption and spillovers from the world technology frontier. Despite its parsimonious parametrization, our empirical ….61, while increasing skill premia in all countries. Removing barriers to trade in goods amplifies income disparities, induces …
Persistent link: https://www.econbiz.de/10010316866
Using various statistical procedures, estimates about the size of the shadow economy in 110 developing, transition and OECD countries are presented. The average size of the shadow economy (in percent of official GDP) over 1999-2000 in developing countries is 41%, in transition countries 38% and...
Persistent link: https://www.econbiz.de/10010294576
Recent economic literature emphasizes the importance of moral considerations to explain compliance behavior with respect to underground activities such as tax evasion. A considerable amount of research aims to identify factors that affect the intrinsic motivation to comply. However, the causal...
Persistent link: https://www.econbiz.de/10010294905
economy reduces corruption in high income countries, but increases corruption in low income countries. Finally, the various … estimation methods are discussed and critically evaluated. …
Persistent link: https://www.econbiz.de/10010294606
or sector, it is their productivity advantage on the local firm to determine the positive effect on domestic productivity … significant and robust Veblen-Gerschenkrion effect. The initial total factor productivity advantage of MNEs on local firm acts as … a stimulus for productivity growth of local firms in the same region. …
Persistent link: https://www.econbiz.de/10010276891
This paper examines Total Factor Productivity (TFP) and knowledge flows, using international patent data. The result is …-industry innovation enhances domestic productivity, and domestic between industry innovations are productivity enhancing. However, foreign …-sourced between-industry innovation has a negative effect on domestic productivity. This highlights the dual aspect of patents as a …
Persistent link: https://www.econbiz.de/10010285349