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Shadow Economy and Do-it-Yourself Activities: The German Case

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Author Info

  • Andreas Buehn
  • Alexander Karmann
  • Friedrich Schneider

Abstract

This paper presents a consistent structural equation (SEM) estimate of the size and development of the shadow economy and of do-it-yourself (DIY) activities in Germany from 1970 to 2005. By 2005, they reached a level of about 17% and 5% of official GDP. While the shadow economy has regularly increased over the years, DIY activities - though quite sizable - have remained more or less constant since the early 1990s. The driving forces for the shadow economy are regulation and tax burden, whereas for DIY activities the level of unemployment is the main factor.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 165 (2009)
Issue (Month): 4 (December)
Pages: 701-722

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200912)165:4_701:seadat_2.0.tx_2-y

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Cited by:
  1. Schneider, Friedrich G. & Buehn, Andreas, 2007. "Shadow economies and corruption all over the world: revised estimates for 120 countries," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 1(9 (Versio), pages 1-53.
  2. Schneider, Friedrich G., 2007. "Shadow Economies and Corruption All Over the World: New Estimates for 145 Countries," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 1(9), pages 1-66.
  3. Friedrich Schneider & Andreas Bühn, 2013. "Estimating the Size of the Shadow Economy: Methods, Problems and Open Questions," CESifo Working Paper Series 4448, CESifo Group Munich.
  4. Pickhardt, Michael & Sarda, Jordi, 2010. "The size of the underground economy in Germany: A correction of the record and new evidence from the Modified-Cash-Deposit-Ratio approach," CAWM Discussion Papers 36, Center of Applied Economic Research Münster (CAWM), University of Münster.
  5. Schneider Friedrich, 2010. "The Influence of Public Institutions on the Shadow Economy: An Empirical Investigation for OECD Countries," Review of Law & Economics, De Gruyter, vol. 6(3), pages 441-468, December.
  6. Friedrich Schneider, 2014. "Outside the State - the Shadow Economy and Shadow Economy Labor Force," CESifo Working Paper Series 4829, CESifo Group Munich.
  7. A. Bühn & M.R. Farzanega, 2011. "Hold Your Breath: A New Index of Air Quality," Working Papers 11-24, Utrecht School of Economics.
  8. Schneider, Friedrich & Buehn, Andreas, 2012. "Shadow Economies in Highly Developed OECD Countries: What Are the Driving Forces?," IZA Discussion Papers 6891, Institute for the Study of Labor (IZA).
  9. Rudolph, Alexandra & Schneider, Friedrich, 2013. "International Human Trafficking: Measuring Clandestinity by the Structural Equation Approach," IZA Discussion Papers 7867, Institute for the Study of Labor (IZA).
  10. Schneider, Friedrich, 2012. "The Shadow Economy and Work in the Shadow: What Do We (Not) Know?," IZA Discussion Papers 6423, Institute for the Study of Labor (IZA).
  11. Friedrich Schneider, 2012. "The Shadow Economy and Tax Evasion: What Do We (Not) Know?," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 13(2), pages 03-12, 07.
  12. Ceyhun Elgin & Friedrich Schneider, 2013. "Shadow Economies in OECD Countries: DGE vs. MIMIC Approaches," Working Papers 2013/13, Bogazici University, Department of Economics.
  13. Andreas Buehn & Friedrich Schneider, 2012. "Shadow economies around the world: novel insights, accepted knowledge, and new estimates," International Tax and Public Finance, Springer, vol. 19(1), pages 139-171, February.
  14. Friedrich Schneider, 2013. "Size and Progression of the Shadow Economies of Turkey and Other OECD Countries from 2003 to 2013; Some New Facts," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 2(2), pages 83-116, May.
  15. 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.

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