Shadow Economy, Tax Evasion, and Transfer Fraud - Definition, Measurement, and Data Problems
AbstractThe paper tries to shed some light on the definition of the shadow economy, in order to separate shadow activities from market activities and household production. A total income concept is applied, which is based on the labor force being engaged in market, shadow and household activities. Based on such a clear concept, tax evasion can be defined and identified in the market sector and is also usually taking place in the shadow economy, where it is often accompanied by evasion of social security contributions as well as transfer fraud. Money usage in the three sectors is then critically analyzed, and measurement as well as data problems are seriously taken into consideration. The results of our research project suggest that the size of the shadow economy as estimated with the currency approach often yields the highest possible values. Other approaches and plausibility considerations produce much lower values, which seem to be much more realistic. Consequently, policy considerations to strengthen the control mechanisms should be met with utmost skepticism.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Economic Journal.
Volume (Year): 24 (2010)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RIEJ20
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.