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The German Shadow Economy: Parted in a United Germany?

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Author Info
Annette Mummert
Friedrich Schneider

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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.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

Volume (Year): 58 (2001)
Issue (Month): 3 (July)
Pages: 286-
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Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200207)58:3_286:tgsepi_2.0.tx_2-s

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Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
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Find related papers by 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 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health, Education, Welfare, and Poverty
P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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  1. Schneider, Friedrich & Klinglmair, Robert, 2004. "Shadow Economies around the World: What Do We Know?," IZA Discussion Papers 1043, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Friedrich Schneider, 2004. "Shadow Economies around the World: What do we really know?," IAW Discussion Papers 16, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
    Other versions:
  3. Friedrich Schneider, 2006. "Shadow Economies and Corruption all over the World: What do we really Know?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  4. Schneider, Friedrich, 2004. "The Size of the Shadow Economies of 145 Countries all over the World: First Results over the Period 1999 to 2003," IZA Discussion Papers 1431, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Lars P. Feld & Benno Torgler, 2007. "Tax Morale after the Reunification of Germany: Results from a Quasi-Natural Experiment," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  6. Tilman Brück & John P. Haisken-De New & Klaus F. Zimmermann, 2006. "Creating low skilled jobs by subsidizing market-contracted household work," Applied Economics, Taylor and Francis Journals, vol. 38(8), pages 899-911, May. [Downloadable!] (restricted)
    Other versions:
  7. Holger Bonin & Wolfram Kempe & Hilmar Schneider, 2003. "Kombilohn oder Workfare?: Zur Wirksamkeit zweier arbeitsmarktpolitischer Strategien," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(1), pages 51-67.
  8. Schneider, Friedrich, 2008. "The Shadow Economy in Germany - A Blessing or a Curse for the Official Economy?," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 38(1), pages 89-111, March. [Downloadable!]
  9. Nikopour , Hesam & Shah Habibullah, Muzafar & Schneider, Friedrich & Law, Siong Hook, 2009. "Foreign Direct Investment and Shadow Economy: A Causality Analysis Using Panel Data," MPRA Paper 14485, University Library of Munich, Germany. [Downloadable!]
  10. Andreas Bühn & Alexander Karmann & Friedrich Schneider, 2007. "Size and Development of the Shadow Economy and of Do-it-yourself Activities in Germany," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  11. Schneider, Friedrich, 2002. "The Size and Development of the Shadow Economies of 22 Transition and 21 OECD Countries," IZA Discussion Papers 514, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Lars P. Feld & Benno Torgler & Bin Ding, 2008. "Coming Closer? Tax Morale, Deterrence and Social Learning after German Unification," School of Economics and Finance Discussion Papers and Working Papers Series 232, School of Economics and Finance, Queensland University of Technology, revised 16 Jun 2008. [Downloadable!]
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  13. Bonin, Holger & Kempe, Wolfram & Schneider, Hilmar, 2002. "Kombilohn oder Workfare? Zur Wirksamkeit zweier arbeitsmarktpolitischer Strategien (Wage Subsidies vs. Workfare: On the Effectiveness of Alternative Strategies to Promote Low-Skilled Employment in Ger," IZA Discussion Papers 587, Institute for the Study of Labor (IZA). [Downloadable!]
  14. Andreas Bühn & Friedrich Schneider, 2008. "MIMIC Models, Cointegration and Error Correction: An Application to the French Shadow Economy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
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