Breusch (2005b) critically addresses an important and challenging question: Is it reliable to use the Multiple Indicators Multiple Causes model to estimate Shadow Economy? Breusch concludes that this approach is not suitable for the purpose. Breusch’s paper highlights the different procedures...

Purpose: The purpose of this paper is to estimate the Tanzanian shadow economy (SE) from 2003 to 2015 and test the statistical relationships between the SE and its potential causes and indicators. Design/methodology/approach: The econometric analysis is based on a multiple indicators multiple...

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 UE and recorded GDP. Design/methodology/approach: we propose to measure UE by...

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. First,...

In this paper we argue that renter’s illusion may not be a form of asymmetric information neither irrationality but rather a way to include in our economic analysis evidence that while homo oeconomicus aims to do a good job of making choices, he frequently is not able to do that. Taxpayers do...