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Household Tax Compliance and the Shadow Economy in Central and Southeastern Europe

Author

Listed:
  • Edward Christie
  • Mario Holzner

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

This paper presents and applies a new indicator of the size of the shadow economy based on the estimation of tax compliance in the household sector. These estimates are performed for the countries of Central, Eastern and Southeastern Europe using 2001 data. Estimates of income declaration rates and of corresponding undeclared household income are computed using household consumption data as well as detailed data on household taxation. Specific aspects such as remittances, the role of agriculture and the impact of tourism are explicitly taken into account and discussed.

Suggested Citation

  • Edward Christie & Mario Holzner, 2004. "Household Tax Compliance and the Shadow Economy in Central and Southeastern Europe," wiiw Balkan Observatory Working Papers 38, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:038
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    File URL: https://wiiw.ac.at/household-tax-compliance-and-the-shadow-economy-in-central-and-southeastern-europe-dlp-3282.pdf
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    References listed on IDEAS

    as
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    2. Friedrich Schneider, 2003. "The Development of the Shadow Economies and Shadow Labour Force of 21 OECD and 22 Transition Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(01), pages 17-23, February.
    3. Schneider, Friedrich, 2005. "Shadow economies around the world: what do we really know?," European Journal of Political Economy, Elsevier, vol. 21(3), pages 598-642, September.
    4. Vladimir Gligorov & Mario Holzner & Michael A Landesmann, 2004. "Prospects for Further (South-) Eastern EU Enlargement: From Divergence to Convergence?," Palgrave Macmillan Books, in: Michael A Landesmann & Dariusz K Rosati (ed.), Shaping the New Europe, chapter 12, pages 315-345, Palgrave Macmillan.
    5. Friedrich Schneider & Dominik Enste, 1999. "Shadow Economies Around the World - Size, Causes, and Consequences," CESifo Working Paper Series 196, CESifo.
    6. Feige,Edgar L. (ed.), 1989. "The Underground Economies," Cambridge Books, Cambridge University Press, number 9780521262309.
    7. repec:ces:ifodic:v:1:y:2003:i:1:p:14567827 is not listed on IDEAS
    8. Edgar L. Feige, 1979. "How Big Is the Irregular Economy?," Challenge, Taylor & Francis Journals, vol. 22(5), pages 5-13, November.
    9. Frey, Bruno S. & Weck-Hanneman, Hannelore, 1984. "The hidden economy as an 'unobserved' variable," European Economic Review, Elsevier, vol. 26(1-2), pages 33-53.
    10. Kaufmann, Daniel & Kaliberda, Aleksander, 1996. "Integrating the unofficial economy into the dynamics of post-socialist economies : a framework of analysis and evidence," Policy Research Working Paper Series 1691, The World Bank.
    11. Lorenz Jarass & Gustav M. Obermair, 2000. "Taxation Systems in Estonia, Poland, Hungary, the Czech Republic and Slovenia," Taxation Studies 0004, Directorate General Taxation and Customs Union, European Commission.
    12. Friedrich Schneider, 2003. "The Development of the Shadow Economies and Shadow Labour Force of 21 OECD and 22 Transition Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(1), pages 17-23, 02.
    13. Halpern,László & Wyplosz,Charles (ed.), 1998. "Hungary: Towards a Market Economy," Cambridge Books, Cambridge University Press, number 9780521630689.
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    Cited by:

    1. Edward Christie, 2004. "Trade Flows in Southeast Europe," wiiw Balkan Observatory Working Papers 59, The Vienna Institute for International Economic Studies, wiiw.
    2. Krstic, Gorana & Sanfey, Peter, 2007. "Mobility, poverty and well-being among the informally employed in Bosnia and Herzegovina," Economic Systems, Elsevier, vol. 31(3), pages 311-335, September.
    3. Mária Lackó, 2004. "Tax Rates and Corruption: Labour-market and Fiscal Effects. Empirical cross-country comparisons on OECD and transition countries," wiiw Research Reports 309, The Vienna Institute for International Economic Studies, wiiw.
    4. Will Bartlett, 2009. "Economic Development In The European Super-Periphery: Evidence From The Western Balkans," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 54(181), pages 21-44, April – J.
    5. Gorana Krstić & Peter Sanfey, 2008. "Earnings Inequality and the Informal Economy: Evidence from Serbia," wiiw Balkan Observatory Working Papers 75, The Vienna Institute for International Economic Studies, wiiw.
    6. Friedrich Schneider & Gorana Krstić & Milojko Arsić & Saša Ranđelović, 2015. "What Is the Extent of the Shadow Economy in Serbia?," Contributions to Economics, in: Gorana Krstić & Friedrich Schneider (ed.), Formalizing the Shadow Economy in Serbia, edition 127, chapter 0, pages 47-75, Springer.
    7. Vasily Astrov & Edward Christie & Vladimir Gligorov & Mario Holzner, 2004. "Monthly Report 5/2004," wiiw Monthly Reports 2004-05, The Vienna Institute for International Economic Studies, wiiw.
    8. Feige, Edgar L., 2016. "Professor Schneider's Shadow Economy:What do we really know? A Rejoinder," MPRA Paper 71903, University Library of Munich, Germany.

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