Table of Contents

Handbook on the Shadow Economy

Handbook on the Shadow Economy

Elgar original reference

Edited by Friedrich Schneider

The shadow economy (also known as the black or underground economy) covers a vast array of trade, goods and services that are not part of the official economy of a country. This original and comprehensive Handbook presents the latest research on the size and development of the shadow economy, which remains an integral component of the economies of most developing and many developed countries.

Introduction

Friedrich Schneider

Subjects: economics and finance, economic crime and corruption, labour economics, public finance, law - academic, corruption and economic crime

Extract

Friedrich Schneider The goal of this handbook on the shadow economy is to provide the reader with some of the latest developments in the size and development of the shadow economies, the driving factors of the shadow economy and the interaction of the shadow economy, with tax morale, government institutions and corruption. In the last ten years some progress has been made with respect to estimating the size and development of the shadow economies using one method over 160 countries from the end of the 1990s up to 2007/08. This is discussed in Part I. In Part II, the regional variation in the size and development of the shadow economy is demonstrated. Part III deals with the shadow economy and illicit work and related activities. In particular, the interaction between do-it-yourself (DIY) activities and the shadow economy is shown. Part IV deals with the difficult issue of tax morale and shadow economy, and Part V, the relation between corruption and the shadow economy and other government institutions is shown. Chapter 1, by Friedrich Schneider, Andreas Buehn and Claudio Montenegro, deals with shadow economies all over the world with new estimates for 162 countries from 1999 to 2007. This chapter presents estimations of the shadow economies for 162 countries, including developing, Eastern European, Central Asian and high income OECD countries over 1999 to 2006/07. According to the authors’ estimations, the average size of the shadow economy (as a percent of ‘official’ GDP) in 2006 in 98 developing countries was 38.7 per...