The fiscal (or financial) illusion refers to the mechanisms that affect the perception of the economic agent about the subjective evaluation of costs and benefits of public policies. This paper aims to contribute to a long and still ongoing discussion in the empirical literature regarding the...

This paper puts forward a framework for evaluating the effects of governmental decentralization on the shadow economy and corruption. The theoretical analysis demonstrates that decentralization exerts both a direct and an indirect impact on the shadow economy and corruption. Firstly,...

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...

Purpose – The goal of this paper is twofold: to estimate the unrecorded economy (UE) of Turkey over the period 1987-2007 using a revised version of the currency demand approach, and to analyze the relationship between the UE and recorded GDP. Design/methodology/approach – The paper proposes...

This paper deals with the empirical research of cost efficiency and technological characteristics of the Health Service in Puglia over the period from 2004 to 2007. A review on the stochastic frontier model and the most recent analyses of the efficiency in the Italian regional health services is...

The present study is aimed at contributing to the ongoing debate about the implications of the incoming recruitment system as proposed by Law 240/2010 (Gelmini's reform). For this purpose, the main implications of the two alternative criteria respectively proposed by the National Agency for the...

In this paper the Organization for Economic Cooperation Development (OECD) approach (adjusted) is applied to estimate the size of the non-observed economy (NOE) in Bosnia and Herzegovina for the year 2001. The method proposed attempts to identify the structure of the NOE according to the reasons...

In this paper, we investigate on the determinants of the size of shadow economy (SE) in Latin America. While the analysis of economic causes of SE has been extensively studied in literature, here we offer a wider prospective. In addition to overall economic development, unemployment rate, and...

This paper analyzes the relationship between unofficial economy (UE) and official GDP. Through the study of the UE within an institutional comprehensive empirical framework, a positive correlation is found between unofficial and official GDP. Empirical evidence on the procyclicality of UE...

The paper extends the analysis of the tax evasion considering one of the most relevant Non-Expected Utility Theory: the Cumulative Prospect Theory (CPT) proposed by Kahneman and Tversky (1992). Particular attention is paid to compare the traditional results of Allingham - Sandmo's (1972) model...