To explain the shadow economy in the Baltic states of Estonia, Lithuania and Latvia, this paper evaluates the relationship between the shadow economy and tax morale. Viewing tax morale as a measure of the symmetry between the codified laws and regulations of formal institutions (state morality)...

This paper provides an evidence-based evaluation of the competing ways of explaining and tackling the informal economy. Conventionally, participants have been viewed as rational economic actors who engage in the informal economy when the benefits outweigh the costs, and thus participation is...

The aim of this paper is to evaluate two contrasting ways of explaining and tackling undeclared work. The rational economic actor approach theorizes undeclared work as arising when the benefits of undertaking undeclared work outweigh the costs, and the policy focus is upon deterring undeclared...

Tax morale was found in literature to shape tax compliance behaviour and to be significantly correlated with strategies of tax effort across countries. In addition views regarding the quality of institutions, the cost-benefit analysis on the use of tax revenues and the quality of governance...

In this paper, the main focus lies on the informal economy and on work in the shadow. The most influential factors on the informal economy are tax policies and state regulation. The size of the informal economy was decreasing over the period 1999 to 2007, from 34.0% to 31.2% for 161 countries...

In recent years, participants in the informal economy have started to be viewed less as rational economic actors who engage in the informal economy when the pay-off is greater than the expected cost of being caught and punished, and more as social actors who engage when their tax morale (i.e.,...