In this paper we investigate how different tax systems and structures affect the extent of the shadow economy. First, we formulate a simple theoretical microeconomic raodel of household behavior, where the household can participate in the official and in the shadow economy. Using comparative...

Sustainablity of Austrian public debt is investigated in the context of political objectives such as stabilizing the business cycle, increasing chances for being re-elected and implementing the ideologies of political parties. Several tests indicate that Austrian fiscal policies were sustainable...