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What Do We Know About The Size Of The Underground Economy In Italy Beyond The "Common Wisdom"? Some Empirically Tested Propositions

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Author Info
Laura Castellucci
Maurizio Bovi

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Abstract

It is commonly thought that the underground economy is larger in Italy than in most other developed countries and that it is growing. Using several methods of measuring it we found no sound support for such view but rather that it fluctuates around a stable mean. We found confirmation of the widespread view of a larger underground economy in the southern regions of the country than in the center-north. We moreover found that the differences between the south and the center-north are not limited to its size but extend to its nature and motivations, thus reaffirming the dualism of the country.

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Paper provided by Tor Vergata University, CEIS in its series Departmental Working Papers with number 120.

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Date of creation: Jun 1999
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Handle: RePEc:rtv:ceiswp:120

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  1. Parthasrathi Shome & Vito Tanzi, 1993. "A Primer on Tax Evasion," IMF Working Papers 93/21, International Monetary Fund.
  2. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November. [Downloadable!] (restricted)
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  1. Bruno Chiarini & Elisabetta Marzano, 2006. "Market Consumption and Hidden Consumption: A Test for Substitutability," Discussion Papers 12_2006, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy. [Downloadable!]
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  2. Elisabetta Marzano, 2004. "Dual Labour Market Theories And Irregular Jobs: Is There a Dualism Even in The Irregular Sector?," CELPE Discussion Papers 81, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
  3. Tausch, Arno, 2009. "Schaufenster Griechenland – was kann aus dem aktuellen Debakel für das soziale Europa gelernt werden?
    [Showcase Greece – what can be learnt from the current debacle for a Social Europe?]]    ," MPRA Paper 14251, University Library of Munich, Germany. [Downloadable!]
  4. Maurizio Bovi, 2004. "The Dark, And Independent, Side Of Italy," ISAE Working Papers 46, ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY). [Downloadable!]
  5. Busato; Francesco & Bruno Chiarini & Vincenzo di Maro, 2005. "Directional Congestion and Regime Switching in a Long Memory Model for Electricity Prices," Economics Working Papers 2005-19, School of Economics and Management, University of Aarhus. [Downloadable!]
  6. Maurizio Bovi & Peter Claeys, 2008. "Treasury V Dodgers. A Tale of Fiscal Consolidation and Tax Evasion," ISAE Working Papers 93 Classification-JEL E62, ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY). [Downloadable!]
  7. Maurizio Bovi, 2003. "The Nature Of The Underground Economy. Some Evidence From Oecd Countries," ISAE Working Papers 26, ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY). [Downloadable!]
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