IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Shadow Economy and Tax Evasion: A Panel VAR approach. The Case of E.U.27

Listed author(s):
  • Mihai Mutascu


    (West University of Timisoara, Faculty of Economics and Business Administration,Timisoara)

  • Anne-Marie Fleischer


    (West University of Timisoara, Faculty of Economics and Business Administration,Timisoara)

The paper investigates the biunivoque relationship between shadow economy (s) and tax evasion (t), considering a panel data-series, from 1997 to 2005, in the case of European Union 27 (E.U.27) countries. The empirical results show that: (1) A positive 1% impulse in s determines a strong descendent reaction of t on short term (first 2-3 years), becoming “aggressive descendent” on the medium and long term, and (2) A positive 1% impulse in t determines a very low ascendant reaction of s’s level on medium and long term. The main finding reveals that the relationship between shadow economy and tax evasion has different amplitude and signs.

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.

File URL:
Download Restriction: no

Article provided by Weissberg Publishing in its journal Economic Research Guardian.

Volume (Year): 1 (2011)
Issue (Month): 1 (September)
Pages: 24-33

in new window

Handle: RePEc:wei:journl:v:1:y:2011:i:1:p:24-33
Contact details of provider:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wei:journl:v:1:y:2011:i:1:p:24-33. See general 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: (Mihai Mutascu)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.