Multiple unofficial economy equilibria and income distribution dynamics in systemic transition
Large increases in unofficial economies in many transition economies arise from a dynamic interaction with rising income inequality and public sector changes in a multiple equilibria system. Returns to unofficial activity are first increasing and then decreasing, implying two distinct stable equilibria, with changes in inequality possibly causing a jump from one to the other. Multiple regressions of data from 18 transition economies find income inequality significantly correlated with the size of the unofficial economy, with the maximum annual rate of inflation also significantly correlated. The latter appears to be the only significant correlate with the increase in the size of the unofficial economy.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 25 (2003)
Issue (Month): 3 (March)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=109348|