The Non-Observed Economy (NOE) vs. the Shadow Economy (SE) display large discrepancies throughout the European Union transition countries, in particular in Poland. A tractable taxonomy of unobserved activities is designed according to both definition and scope. Direct measurements from tax...

This paper assesses the relationship between institutions, output, and productivity, when official output is corrected for the size of the shadow economy. Our results confirm the usual positive impact of institutional quality on official output and total factor productivity, and its negative...