This paper investigates the factors that determine tax evasion in Ghana using time series data covering the period 1970-2010. Employing the currency demand approach, we obtained the estimates of the shadow economy and the level of tax evasion for the entire period. Using the bounds test...

This paper investigates the factors that determine tax evasion in Ghana using time series data covering the period 1970-2010. Employing the currency demand approach, we obtained the estimates of the shadow economy and the level of tax evasion for the entire period. Using the bounds test...

This paper has attempted to provide estimates of the size of the underground economy and estimated tax evasion in Ghana from 1990 to 2010 which have received little consideration. The Stock-Watson DOLS estimate for currency demand was employed. Our estimates suggest that underground economy is...