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Regional Estimates of the Shadow Economy in Europe

Author

Listed:
  • Egle Tafenau
  • Helmut Herwartz
  • Friedrich Schneider

Abstract

The aim of the paper is to estimate the extent of the shadow economy in the regions of the European Union. For this purpose the multiple-indicators multiple-causes approach combined with elements of spatial econometrics is implemented. The analysis shows that the shadow economy is most extensive in Eastern and Southern Europe, confirming results from previous literature. Within countries, the poorest regions tend to exhibit the highest shadow economy quotas. The smallest extent of shadow activities is obtained for the Netherlands and the United Kingdom, while in Poland the shadow economy is most extensive.

Suggested Citation

  • Egle Tafenau & Helmut Herwartz & Friedrich Schneider, 2010. "Regional Estimates of the Shadow Economy in Europe," International Economic Journal, Taylor & Francis Journals, vol. 24(4), pages 629-636.
  • Handle: RePEc:taf:intecj:v:24:y:2010:i:4:p:629-636
    DOI: 10.1080/10168737.2010.526010
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    References listed on IDEAS

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    1. Helmut Herwartz & Egle Tafenau & Friedrich Schneider, 2015. "One Share Fits All? Regional Variations in the Extent of the Shadow Economy in Europe," Regional Studies, Taylor & Francis Journals, vol. 49(9), pages 1575-1587, September.
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