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The German Shadow Economy: Parted in a United Germany?

Author

Listed:
  • Annette Mummert
  • Friedrich Schneider

Abstract

This paper analyzes differences between shadow economic activities in the western and eastern part of Germany. Due to new empirical results easterners' engagement in shadow economic activities seems to be lower than the engagement of their western neighbors. How can we explain this seemingly parted shadow economy in an otherwise united Germany? We show that current explanations of shadow economies are far from sufficient in explaining different shadow economic activities in Germany. Hence, additional arguments are presented recurring to an institutional perspective.

Suggested Citation

  • Annette Mummert & Friedrich Schneider, 2002. "The German Shadow Economy: Parted in a United Germany?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 58(3), pages 286-316, July.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200207)58:3_286:tgsepi_2.0.tx_2-s
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    More about this item

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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