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The underground economy crucially affects growth and unemployment in both developed and developing countries. Nevertheless, this widespread phenomenon does not appear in the basic model for macroeconomic analysis, namely the Aggregate Demand-Aggregate Supply (or simply AD-AS) model. Therefore,...
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tax enforcement with an otherwise standard two-sector neoclassical stochastic growth model. The Bayesian estimation of the … model based on Italian data provides evidence in favor of an important underground sector in Italy, with a size that has … sensitive reduction in the size of the underground economy and positive stimulus to the regular sector that jointly increase the …
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development and international trade openness with regard to the size of the underground economy in 20 EU (European Union … sector development and trade openness on the size of the underground economy. In addition to the static relationship … between the variables. The main findings of this paper suggest that financial development has a significant impact on the size …
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