Albu, Lucian Liviu; Iorgulescu, Raluca; Stanica, Cristian - In: Journal for Economic Forecasting (2010) 2, pp. 46-56
Economists have already established a relationship between tax rates and size of the hidden economy. The higher the level of taxation is, the greater the incentive to participate in hidden activity and escape taxes is. On the one hand, coming from generally accepted findings of the theory, we...