Perceptions of unreported economic activities in Baltic Firms. Individualistic and non-individualistic motives
AbstractThis paper analyses managerial dishonesty in the form of economic activity not reported to the authorities. We employ data from a survey of Baltic firm managers, who were asked to assess the prevalence of unreported profits, employment and wages in their industry and to give their views on a range of questions related to various reasons for dishonest behaviour. Unreported economic activities are perceived to be widespread, although their extent and composition vary across the three countries. We employ a principal component analysis of the survey answers and identify three clusters capturing both individualistic and nonindividualistic motives for dishonest behaviour: 1) reciprocity towards government; 2) rational choice related motives; and 3) norms towards society as proxied by the tolerance of illegal activities. The econometric analysis indicates that all three motives are related to perceptions of unreported activities in the Baltic countries
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Bibliographic InfoPaper provided by Bank of Estonia in its series Bank of Estonia Working Papers with number wp2012-8.
Date of creation: 04 Feb 2013
Date of revision: 04 Feb 2013
Postal: Estonia bld. 13, 15095 Tallinn, ESTONIA
Find related papers by JEL classification:
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-02-08 (Accounting & Auditing)
- NEP-ALL-2013-02-08 (All new papers)
- NEP-CIS-2013-02-08 (Confederation of Independent States)
- NEP-EUR-2013-02-08 (Microeconomic European Issues)
- NEP-IUE-2013-02-08 (Informal & Underground Economics)
- NEP-MAC-2013-02-08 (Macroeconomics)
- NEP-TRA-2013-02-08 (Transition Economics)
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