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This comment provides a reply to Prof. Feige's paper with the title “Reflections on the Meaning and Measurement of Unobserved Economies: What do we really know about the ‘Shadow Economy'?”, in which Prof. Feige heavily criticizes me. I show that the same critique which Prof. Feige raises...
Persistent link: https://www.econbiz.de/10012994281
This paper reviews the meaning and measurement of unobserved economies germane to tax evasion and macroeconomic information systems. These include the unreported, non-observed, underground, illegal, informal and unrecorded economies. It reviews the progress and shortcomings of national and...
Persistent link: https://www.econbiz.de/10012999626
Persistent link: https://www.econbiz.de/10012868963
Given that 60 per cent of the global workforce is in the informal sector, this article develops a typology that classifies economies according to, firstly, where different countries sit on a continuum of informalization and, secondly, the character of their informal sectors. This is then applied...
Persistent link: https://www.econbiz.de/10013009469
different fiscal policy interventions, we find that taxation is a critical parameter to define the size of capital allocation in … reduce the convenience to produce underground. We also confirm the depressing effect on investment of taxation (see, for …
Persistent link: https://www.econbiz.de/10012724015
between the official and the underground economy. Or, if the firm was initially operating only officially, direct taxation of … its business would not be a reason to go underground. Indirect taxation in the form of a sales tax does influence an … revenue through a combination of a cash-flow tax with indirect taxation, under only consumer-surplus loss by the underground …
Persistent link: https://www.econbiz.de/10013022162
Macroeconomic models that omit the shadow economy systematically mis-forecast and mis-measure the effect of fiscal –in particular tax– policy on economic activity and tax revenue. We add an informal sector to the Bank of Greece DSGE model and use the actual package of fiscal consolidation...
Persistent link: https://www.econbiz.de/10014078167
We build a general equilibrium model in which both illegal immigration and the size of the informal sector are endogenously determined. In this framework, we show that indirect policy measures such as tax reduction and detection of informal activities can be used as substitutes for border...
Persistent link: https://www.econbiz.de/10011407708
The paper investigates the role of the minimum wage in a competitive economy in which there is underreporting of earnings by employed labour. The minimum wage induces higher compliance by some low-productivity workers and transforms a nominally neutral fiscal system into a regressive one. A...
Persistent link: https://www.econbiz.de/10012730034
the model to the Brazilian economy, and evaluate the impact of credit frictions and taxation on occupational choices …
Persistent link: https://www.econbiz.de/10011865619