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What Do We Know About the Shadow Economy?

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Abstract

Estimates of the size of the shadow economy in 21 OECD countries are presented. The average size of the shadow economy (as a percentage of ‘official’ GDP) over 1999/2000 in these countries is 16.7%. The author concludes that it is the increasing burden of taxation and social security contributions, combined with rising state regulatory activities, that are the driving forces for the recent growth in size of the shadow economy in the countries concerned.

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  • Friedrich Schneider, 2001. "What Do We Know About the Shadow Economy?," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 2(4), pages 19-32, October.
  • Handle: RePEc:wej:wldecn:75
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    Cited by:

    1. Clements, Kenneth W., 2004. "Three facts about marijuana prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), June.
    2. Colin Williams, 2005. "Unraveling the Meanings of Underground Work," Review of Social Economy, Taylor & Francis Journals, vol. 63(1), pages 1-18.
    3. Hope Corman & Kelly Noonan & Nancy E. Reichman & Dhaval Dave, 2004. "Demand for Illicit Drugs by Pregnant Women," NBER Working Papers 10688, National Bureau of Economic Research, Inc.
    4. Dhaval Dave, 2004. "Illicit Drug Use Among Arrestees and Drug Prices," NBER Working Papers 10648, National Bureau of Economic Research, Inc.
    5. Michael Grossman, 2004. "Individual Behaviors and Substance Use: The Role of Price," NBER Working Papers 10948, National Bureau of Economic Research, Inc.
    6. Robert T. Burrus, Jr., 2006. "The Impact of Weight-Based Penalties on Drug Purity and Consumption: A Theoretical Analysis," Eastern Economic Journal, Eastern Economic Association, vol. 32(4), pages 629-646, Fall.
    7. James Fogarty, 2004. "The Own-Price Elasticity of Alcohol: A Meta-Analysis," Economics Discussion / Working Papers 04-01, The University of Western Australia, Department of Economics.

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