This paper presents an empirical analysis of the relationship between fiscal illusion and the shadow economy for 104 countries over the period 1989-2009. We argue that both unobservable phenomena are closely linked to each other, as the creation of a fiscal illusion may be helpful if governments...

By employing comparative data, this paper addresses a central question: why is tax collection in Tajikistan lower than in other transitional countries? It presents a comparative analysis of the role of weak institutions and a shadow economy in determining the low level of tax effort measured by...