This paper presents the first MIMIC (multiple indicator multiple causes) model estimate of the size and development of the shadow economy and of do-it-yourself (DIY) activities in Germany from 1970 to 2005. By 2005, they reached a level of about 17% and 4.94%. While the shadow economy has...

I review recent developments in the economic analysis of crime, focusing in particular on organized crime and corruption. I first discuss the main challenges to the empirical identification of causal relationships – namely, measurement error due to endogenous reporting of crime and the fact...