Méon, Pierre-Guillaume; D'Hernoncourt, Johanna - Solvay Brussels School of Economics and Management, … - 2012
This paper reports a negative relationship between the size of the shadow economy and generalized trust, in a sample of … endogeneity. It is independent from trust in institutions and from income inequality, and is mainly present in the sample of … developing countries. Those findings suggest that the tax compliance effect of trust dominates its role as a substitute for the …