Buehn, Andreas; Lessmann, Christian; Markwardt, Gunther - In: Applied Economics 45 (2013) 18, pp. 2567-2578
This article studies the impact of decentralization on the shadow economy. We argue that decentralization may decrease the size of the shadow economy mainly through two transmission channels: (1) decentralization enhancing public sector efficiency (<italic>efficiency effect</italic>), and (2) decentralization...