Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Open Economics

1 Issue per year

Open Access
Online
ISSN
2451-3458
See all formats and pricing
More options …

Shadow Economy: Estimation Methods, Problems, Results and Open questions

Friedrich Schneider
  • Corresponding author
  • Department of Economics, Johannes Kepler University of Linz, Altenberger Str. 69, 4040 Linz, Austria
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Andreas Buehn
Published Online: 2017-09-02 | DOI: https://doi.org/10.1515/openec-2017-0001

Abstract

This paper presents various methods used for estimating the size of the shadow economy. Each method is evaluated and its strengths and weaknesses are discussed, as well as results each method yields. The purpose of the paper is threefold: Firstly, to demonstrate that there is no single infallible method for estimating the size and development of the shadow economy and results can differ significantly between different approaches. The MIMIC approach, discussed in greater detail, is often used due to its flexibility. Secondly, the paper discusses the very definition of the shadow economy and factors contributing to its growth. Finally, latest estimations of the size of the shadow economies of 143 countries over the period 1996 to 2014 are presented.

Keywords : shadow economy estimates; MIMIC approach; methods to estimate the shadow economy; advantages and disadvantages of the methods; MIMIC-method; calibration procedure; light intensity approach

References

  • Aigner, D., Schneider, F. and D. Ghosh (1988), Me and my shadow: estimating the size of the US hidden economy from time series data, in: W.A. Barnett, E.R. Berndt and H. White (eds.), Dynamic Econometric Modeling, Cambridge University Press, Cambridge, UK, pp. 224-243.Google Scholar

  • Ahumada, H., Facundo, A., Canavese A. and P. Canavese (2004), The demand for currency approach and the size of the shadow economy: a critical assessment, Discussion Paper, Delta Ecole Normale Superieure, Paris.Google Scholar

  • Allingham, M.G. and A. Sandmo (1972), Income Tax Evasion: A Theoretical Analysis, Journal of Public Economics, 1/3, pp. 323-338.Google Scholar

  • Alm, J., Martinez-Vazquez, J. and F. Schneider (2004), Sizing the problem of the hard-to-tax, Working Paper, Georgia State University, USA.Google Scholar

  • Alm, J. and B. Torgler (2006), Culture differences and tax morale in the United States and in Europe, Journal of Economic Psychology, 27/2, pp. 224-246.CrossrefGoogle Scholar

  • Amendola, A. and R. Dell’Anno (2010), Institutions and Human Development in the Latin America Shadow Economy, Estudios en Derecho y Gobierno, 3/1, pp. 9-25.Google Scholar

  • Andreoni, J., Erard B. and J. Feinstein (1998), Tax Compliance, Journal of Economic Literature, 36/4, pp. 818-860.Google Scholar

  • Belev, B. (2003), The informal economy in the EU Accession Countries: Size, scope, trends and challenges to the process of EU enlargement, Center for Study of Democracy, Sofia.Google Scholar

  • Bhattacharyya, D.K. (1999), On the economic rationale of estimating the hidden economy, Economic Journal, 109, pp. 348-359.Google Scholar

  • Blades, D. (1982), The hidden economy and the national accounts, OECD Occasional Studies, pp. 28-44.Google Scholar

  • Boeschoten, W.C. and M.M.G. Fase (1984), The Volume of Payments and the Informal Economy in the Netherlands 1965-1982. M. Nijhoff, Dordrecht.Google Scholar

  • Bollen, K.A. (1989), Structural Equations with Latent Variables, New York (N.Y.), Wiley Publishing Company.Google Scholar

  • Breusch, T. (2005a), The Canadian underground economy: An examination of Giles and Tedds, Canadian Tax Journal, 53, pp. 367-391.Google Scholar

  • Breusch, T. (2005b), Estimating the underground economy using MIMIC models, Working Paper. Available under: http://econwpa.wustl.edu/eps/em/papers/0507/0507003.pdf.Google Scholar

  • Breusch, T. (2016), Estimating the Underground Economy Using MIMIC Models, Journal of Tax Administration 2/2.1, Special Issue: The Shadow Economy.Google Scholar

  • Buehn, A. and F. Schneider (2011), Corruption and the shadow economy: like oil and vinegar, like water and fire?, International Tax and Public Finance, LLC: 220-41.Google Scholar

  • Buehn, A. and F. Schneider (2012), Shadow Economies around the World: Novel Insights, Accepted Knowledge, and New Estimates, International Tax and Public Finance, 19, pp. 139-171.CrossrefGoogle Scholar

  • Buehn, A. and F. Schneider (2013), A preliminary attempt to estimate the financial flows of transnational crime using the MIMIC method, in: B. Unger and D. van der Linde (eds.), Research Handbook on Money Laundering, Edward Elgar Publishing, Cheltenham, UK, pp. 172-189.Google Scholar

  • Buehn, A., Karmann, A. and F. Schneider (2009), Shadow economy and do-it-yourself activities: the German case, Journal of Institutional and Theoretical Economics, 165/4, pp.701-722.Google Scholar

  • Cagan, P. (1958), The demand for currency relative to the total money supply, Journal of Political Economy, 66, pp. 302-328.Google Scholar

  • Cassar, A. (2001), An index of the underground economy in Malta, Bank of Valletta Review, 23, pp. 44-62.Google Scholar

  • Clotefelter, C.T. (1983), Tax evasion and tax rates: an analysis of individual returns, Review of Economic Statistics, 65, pp. 363-373.CrossrefGoogle Scholar

  • Contini, B. (1981), Labor market segmentation and the development of the parallel economy: the Italian experience, Oxford Economic Papers, 33, pp. 401-412.CrossrefGoogle Scholar

  • Cziraky, D. (2004), LISREL 8.54: A program for structural equation modelling with latent variables, Journal of Applied Econometrics, 19, pp. 135-141.CrossrefGoogle Scholar

  • Dallago, B. (1990), The Irregular Economy: The “Underground Economy” and the “Black Labour Market”, Dartmouth Publishing, UK.Google Scholar

  • Dell’Anno, R. (2003), Estimating the shadow economy in Italy: A structural equation approach, Working Paper 2003-7, Department of Economics, University of Aarhus, Aarhus, Denmark.Google Scholar

  • Dell’Anno R. (2007), The Shadow Economy in Portugal: An Analysis with the MIMIC Approach, Journal of Applied Economics, 10, pp. 253-277.Google Scholar

  • Dell’Anno, R. and F. Schneider, (2004), The shadow economy of Italy and other OECD countries: what do we know?, Discussion Paper, Department of Economics, University of Linz, Linz, Austria.Google Scholar

  • Dell’Anno, R. and F. Schneider (2009), A complex approach to estimate shadow economy: the structural equation modelling, in M. Faggnini and T. Looks (eds.), Coping with the Complexity of Economics, Springer, Berlin, pp. 110-30.Google Scholar

  • Dell’Anno R., Gomez-Antonio, M. and A. Alanon Pardo (2007), Shadow Economy in three different Mediterranean Countries: France, Spain and Greece. A MIMIC Approach, Empirical Economics, 33, pp. 51-84.Google Scholar

  • Del Boca, D. (1981), Parallel economy and allocation of time, Micros (Quarterly Journal of Microeconomics), 4, pp. 13-18.Google Scholar

  • Del Boca, D. and F. Forte (1982), Recent empirical surveys and theoretical interpretations of the parallel economy in Italy, in: V. Tanzi (ed.), The Underground Economy in the United States and Abroad, Lexington Books, Lexington, MA, pp. 160-178.Google Scholar

  • Dreher, A. and F. Schneider (2009), Corruption and the Shadow Economy: An Empirical Analysis, Public Choice, 144/2, pp. 215-277.Google Scholar

  • Dreher, A., Kotsogiannis, C. and S. McCorriston (2009), How Do Institutions Affect Corruption and the Shadow Economy?, International Tax and Public Finance, 16/4, pp. 773-796.CrossrefGoogle Scholar

  • Enste, D. and F. Schneider (2006), Umfang und Entwicklung der Schattenwirtschaft in 145 Ländern, in: F. Schneider and D. Enste (eds.), Jahrbuch Schattenwirtschaft 2006/07. Zum Spannungsfeld von Politik und Ökonomie, LIT Verlag, Berlin, pp. 55-80.Google Scholar

  • European Commission (2007), Stepping up the fight against undeclared work, COM (2007) 628 final, European Commission, Brussels.Google Scholar

  • Feige, E.L. (1986), A re-examination of the underground economy in the United States, IMF Staff Papers, 33, pp. 768-781.Google Scholar

  • Feige, E.L. (ed.) (1989), The Underground Economies. Tax Evasion and Information Distortion, Cambridge University Press, Cambridge.Google Scholar

  • Feige, E.L. (1994), The underground economy and the currency enigma, Supplement to Public Finance/Finances Publiques, 49, pp. 119-136.Google Scholar

  • Feige, E.L. (1996), Overseas holdings of U.S. currency and the underground economy. In: Pozo, S. (ed.), Exploring the Underground Economy. W.E. Upjohn Institute for Employment Research, Kalamazoo, MI, pp. 5-62.Google Scholar

  • Feige, Edward L. (2016a), Reflections on the Meaning and Measurement of Unobserved Economist: What Do We Really Know About the Shadow Economy?, Journal of Tax Administration, 2/2, Special Issue: The Shadow Economy.Google Scholar

  • Feige, Edward L. (2016b), Professor Schneider’s Shadow Economy (SSE): What Do We Really Know? A Rejoinder., Journal of Tax Administration, 2/2.Google Scholar

  • Feld, L.P. and B.S. Frey (2007), Tax Compliance as the Result of a Psychological Tax Con-tract: The Role of Incentives and Responsive Regulation, Law and Policy, 29/1, pp. 102-120.Google Scholar

  • Feld, L.P. and C. Larsen (2005), Black Activities in Germany in 2001 and 2004: A Comparison Based on Survey Data, Study no. 12, Copenhagen: Rockwool Foundation Research Unit.Google Scholar

  • Feld, L.P. and C. Larsen (2008), “Black” activities low in Germany in 2006, News from the Rockwool Foundation Research Unit, March, pp. 1-12.Google Scholar

  • Feld, L.P. and C. Larsen (2009), Undeclared Work in Germany 2001-2007 - Impact of Deterrence, Tax Policy, and Social Norms: An Analysis Based on Survey Data, Springer, Berlin.Google Scholar

  • Feld, L.P. and F. Schneider (2010), Survey on the shadow economy and undeclared earnings in OECD countries, German Economic Review, 11/2, pp. 109-49.CrossrefGoogle Scholar

  • Feld, L.P. and Schneider, F. (2016), Reply to Gebhard Kirchgässner, German Economic Review 18/1, 2016, pp. 112-117.CrossrefGoogle Scholar

  • Fleming, M.H., Roman, J. and G. Farrel (2000), The shadow economy, Journal of International Affairs, 53, pp. 64-89.Google Scholar

  • Folmer, H. and A. Karmann (1992), The permanent income hypothesis revisited - a dynamic LISREL approach, Methods of Operations Research, 64/3, pp. 355-359.Google Scholar

  • Franz, A. (1983), Wie groß ist die „schwarze“ Wirtschaft?, Mitteilungsblatt der Österreichischen Statistischen Gesellschaft, 49, pp. 1-6.Google Scholar

  • Frey, B. S. and W. Pommerehne (1984), The hidden economy: State and prospect for measurement, Review of Income and Wealth, 30/1, pp. 1-23.CrossrefGoogle Scholar

  • Frey, B.S. and H. Weck (1983a), Bureaucracy and the shadow economy: a macro-approach, in: Hanusch, H. (ed.), Anatomy of Government Deficiencies, Springer, Berlin, pp. 89-109.Google Scholar

  • Frey, B.S. and H. Weck (1983b), Estimating the shadow economy: a “naïve” approach, Oxford Economic Papers, 35, pp. 23-44.CrossrefGoogle Scholar

  • Frey, B.S. and H. Weck-Hannemann (1984), The hidden economy as an “unobserved” variable, European Economic Review, 26, pp. 33-53.CrossrefGoogle Scholar

  • Frey, B.S., Weck, H. and W.W. Pommerehne (1982), Has the shadow economy grown in Germany? An exploratory study, Weltwirtschaftliches Archiv, 118, pp. 499-524.Google Scholar

  • Friedman, E., Johnson, S., Kaufmann, D. and P. Zoido-Lobatón (2000), Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69 Countries, Journal of Public Economics, 76/4, pp. 459-493.Google Scholar

  • Garcia, G. (1978), The currency ratio and the subterranean economy, Financial Analysts Journal, 69, pp. 64-66.Google Scholar

  • Gasparenje, L., Remeikiene, R. and F. Schneider (2015), The Factors of Digital Shadow Consumption, Intellectual Economics, 9/2, pp. 108-119.Google Scholar

  • Gerxhani, K. (2003), The informal sector in developed and less-developed countries: A literature survey, Public Choice, 114/3-4, pp. 295-318.Google Scholar

  • Giles, D.E.A. (1997a), Causality between the measured and underground economies in New Zealand, Applied Economics Letters, 4, pp. 63-67.CrossrefGoogle Scholar

  • Giles, D.E.A. (1997b), Testing the asymmetry in the measured and underground business cycles in New Zealand, Economic Record, 71, pp. 225-232.Google Scholar

  • Giles, D.E.A. (1999a), Measuring the Hidden Economy: Implications for Econometric Modelling, Economic Journal, 109/3, pp. 370-380.Google Scholar

  • Giles, D.E.A. (1999b), Modeling the hidden economy in the tax-gap in New Zealand, Empirical Economics, 24, pp. 621-640.Google Scholar

  • Giles, D.E.A. (1999c), The rise and fall of the New Zealand underground economy: are the reasons symmetric?, Applied Economics Letters, 6, pp. 185-189.CrossrefGoogle Scholar

  • Giles, D.E.A. and L.M. Tedds (2002), Taxes and the Canadian underground economy, Canadian Tax Paper, vol. 106. Canadian Tax Foundation, Toronto.Google Scholar

  • Giles, D.E.A., Tedds, L.M. and W. Gugsa (2002), The Canadian underground and measured economies, Applied Economics, 34, pp. 2347-2352.CrossrefGoogle Scholar

  • Gutmann, P.M. (1977), The subterranean economy, Financial Analysts Journal, 34/1, pp. 24- 27.Google Scholar

  • Haigner, S., Jenewein, S., Schneider F. and F. Wakolbinger (2013), Driving Forces of Informal Labour Supply and Demand in Germany, International Labour Review, 152/3-4, pp. 507-524.Google Scholar

  • Hashimzade, N. and C. Hedy (2016), Reflections on the Meaning and Measurement of Unobserved Economies: An Editorial Comment, Journal of Tax Administration, 2/2.Google Scholar

  • Hassan, M., and F. Schneider (2016), Modelling Egyptian Shadow Economy: A MIMIC Model and the Currency Demand Approach, Journal of Economics and Political Economy 3/3, pp. 309-339.Google Scholar

  • Hassan, M., and F. Schneider (2016a), Size and Development of Shadow Economies of 157 World Wide Countries, Updated New Measures from 1999-2013, Journal of Global Economics, 2016, 4/3, pp. 1-14.Google Scholar

  • Helberger, C. and H. Knepel (1988), How big is the shadow economy? A re-analysis of the unobserved-variable approach of B.S. Frey and H. Weck-Hannemann, European Economic Review, 32/4, pp. 965-976.CrossrefGoogle Scholar

  • Hill, R. and M. Kabir (1996), Tax rates, the tax mix, and the growth of the underground economy in Canada: what can we infer?, Canadian Tax Journal/Revue Fiscale Canadienne, 44, pp. 1552-1583.Google Scholar

  • IfD Allensbach (1975), Studie im Auftrag der Kommission für Wirtschaftlichen und Sozialen Wandel, Bodensee: Allensbach.Google Scholar

  • IRS (1979), Estimates of Income Unreported on Individual Tax Reform, Internal Revenue Service, U.S. Department of the Treasury, Washington, DC.Google Scholar

  • IRS (1983), Income Tax Compliance Research: Estimates for 1973-81, Internal Revenue Service, U.S. Department of the Treasury, Washington, DC.Google Scholar

  • Isachsen, A.J. and S. Strøm (1985), The Size and Growth of the Hidden Economy in Norway, Review of Income and Wealth, 31/1, pp. 21-38.CrossrefGoogle Scholar

  • Isachsen, A.J., Klovland, J. and S. Strom (1982), The hidden economy in Norway, in: Tanzi, V. (ed.), The Underground Economy in the United States and Abroad, DC Heath, Lexington Books, Lexington, MA, pp. 209-231.Google Scholar

  • Johnson, S., Kaufmann, D. and A. Shleifer (1997), The unofficial economy in transition, Brookings Papers on Economic Activity, Fall, Washington D.C.CrossrefGoogle Scholar

  • Johnson, S., Kaufmann, D. and P. Zoido-Lobatón (1998a), Regulatory discretion and the unofficial economy, The American Economic Review, 88/2, pp. 387-392.Google Scholar

  • Johnson, S., Kaufmann D. and P. Zoido-Lobatón (1998b), Corruption, Public Finances and the Unofficial Economy, World Bank Policy Research Working Paper Series No. 2169, The World Bank, Washington, D.C.Google Scholar

  • Kanniainen, V., Pääkönen J. and F. Schneider (2004), Fiscal and Ethical Determinants of Shadow Economy: Theory and Evidence, Discussion Paper, Department of Economics, Johannes Kepler University of Linz, Linz, Austria.Google Scholar

  • Karmann, A. (1986), Monetäre Ansätze zur Erfassung der Schattenwirtschaft: Ein Vergleich verschiedener Messansätze, Kredit und Kapitel, 19, pp. 233-247.Google Scholar

  • Karmann, A. (1990), Schattenwirtschaft und ihre Ursachen: Eine empirische Analyse zur Schwarzwirtschaft und Selbstversorgung in der Bundesrepublik Deutschland, Zeitschrift für Wirtschafts- und Sozialwissenschaften (ZWS), 110, pp. 185-206.Google Scholar

  • Kaufmann, D. and A. Kaliberda (1996), Integrating the unofficial economy into the dynamics of post socialist economies: a framework of analyses and evidence, in: Kaminski, B. (ed.), Economic Transition in Russia and the New States of Eurasia. M.E. Sharpe, London, pp. 81-120.Google Scholar

  • Kazemier, B. (2006), Monitoring the underground economy: a survey of methods and estimates, in: Schneider, F. and D. Enste (eds.), Jahrbuch Schattenwirtschaft 2006/07. Zum Spannungsfeld von Politik und Ökonomie, Berlin: LIT Verlag, pp. 11-53.Google Scholar

  • Kirchgässner, G. (1983), Size and development of the West German shadow economy, 1955-1980, Zeitschrift für die Gesamte Staatswissenschaft, 139, pp. 197-214.Google Scholar

  • Kirchgässner, G. (1984), Verfahren zur Erfassung des in der Schattenwirtschaft erarbeiteten Sozialprodukts, Allgemeines Statistisches Archiv, 68, pp. 378-405.Google Scholar

  • Kirchgässner, G. (2016), On estimating the size of the shadow economy, German Economic Review, 18/1, 2016, pp. 99-111.CrossrefGoogle Scholar

  • Kirchler, E. (2007), The Economic Psychology of Tax Behaviour, Cambridge (UK) University Press, Cambridge.CrossrefGoogle Scholar

  • Klovland, J. (1984), Tax evasion and the demand for currency in Norway and Sweden: is there a hidden relationship?, Scandinavian Journal of Economics, 86, pp. 423-439.CrossrefGoogle Scholar

  • Kucera, D. and L. Roncolato (2008), Informal Employment: Two Contested Policy Issues, International Labor Review, 147/3, pp. 321-348.Google Scholar

  • Lackó, M. (1996), Hidden economy in East-European countries in international comparison, Working paper, International Institute for Applied Systems Analysis (IIASA), Luxemburg.Google Scholar

  • Lackó, M. (1998), The Hidden Economies of Visegrad Countries in International Comparison: A Household Electricity Approach, in: Halpern, L. and Ch. Wyplosz (eds.), Hungary: Towards a Market Economy, Cambridge (Mass.), Cambridge University Press.Google Scholar

  • Lackó, M. (1999), Electricity Intensity and the Unrecorded Economy in Post-Socialist Countries, in: Feige, E. and K. Ott (eds.), Underground Economies in Transition, Ashgate Publishing Company.Google Scholar

  • Lackó, M. (2000a), Do Power Consumption Data Tell the Story? Electricity Intensity and Hidden Economy in Post-Socialist Countries, in: Maskin, E. and A. Simonovits (eds.), Planning, Shortage and Transformation: Essays in Honor of Janos Kornai, Cambridge (Mass.), The MIT Press.Google Scholar

  • Lackó, M. (2000b), Hidden Economy - an Unknown Quantity? Comparative Analysis of Hidden Economies in Transition Economies, 1989-95, Economics of Transition, 8/1, pp. 117-149.Google Scholar

  • Langfeldt, E. (1984), The unobserved economy in the Federal Republic of Germany, in: Feige, E.L. (ed.), The Unobserved Economy, Cambridge University Press, Cambridge, UK, pp. 236-260.Google Scholar

  • Lippert, O. and M. Walker (eds.) (1997), The Underground Economy: Global Evidences of its Size and Impact, The Frazer Institute, Vancouver, B.C.Google Scholar

  • Lizzeri, C. (1979), Mezzogiorno in Controluce. Enel, Naples.Google Scholar

  • Loayza, N.V. (1996), The economics of the informal sector: a simple model and some empirical evidence from Latin America, Carnegie-Rochester Conference Series on Public Policy, 45, pp. 129-162.CrossrefGoogle Scholar

  • Long, J.S. (1983), Confirmatory Factor Analysis, Sage Publishing Company, Beverly Hills (CA).Google Scholar

  • Losby, J.L., Else, J.F., Kingslow, M.E., Edgcomb, E.L., Malm, E.T. and V. Kao (2002), Informal Economy Literature Review, The Aspen Institute, Microenterprise Fund for Innovation, Effectiveness, Learning and Dissemination, Washington D.C., and ISED Consulting and Research, Newark DE.Google Scholar

  • MacAfee, K. (1980), A glimpse of the hidden economy in the national accounts, Economic Trends, 136, pp. 81-87.Google Scholar

  • Medina, L. and F. Schneider (2017), Shadow Economies Around the World: New Results for 143 Countries Over 1996-2014, Discussion Paper, Department of Economics, University of Linz, Linz, Austria.Google Scholar

  • Mogensen, G.V. (1985), Sort Arbejde i Danmark, Institut for Nationalokonomi, Copenhagen.Google Scholar

  • Mogensen, G.V., Kvist, H.K., Kfrmendi, E. and S. Pedersen (1995), The Shadow Economy in Denmark 1994: Measurement and Results, Study no. 3, The Rockwool Foundation Research Unit, Copenhagen.Google Scholar

  • Morris, B. (1993), Editorial statement, International Economic Insides, vol. IV. International Statistical Yearbook, Budapest.Google Scholar

  • O’Higgins, M. (1989), Assessing the underground economy in the United Kingdom, in: Feige, E.L. (ed.), The Underground Economies: Tax Evasion and Information Distortion, Cambridge University Press, Cambridge, UK, pp. 175-195.Google Scholar

  • O’Neill, D.M. (1983), Growth of the underground economy 1950-81: some evidence from the current population survey, Study for the Joint Economic Committee, U.S. Congress Joint Committee Print, U.S. Gov. Printing Office, Washington, DC, pp. 98-122.Google Scholar

  • Park, T. (1979), Reconciliation Between Personal Income and Taxable Income, Bureau of Economic Analysis, Washington, DC, pp. 1947-1977.Google Scholar

  • Pedersen, S. (2003), The Shadow Economy in Germany, Great Britain and Scandinavia: A Measurement Based on Questionnaire Service, Study No. 10, The Rockwoll Foundation Research Unit, Copenhagen.Google Scholar

  • Petersen, H.G. (1982), Size of the public sector, economic growth and the informal economy: development trends in the Federal Republic of Germany, Review of Income and Wealth, 28, pp. 191-215.CrossrefGoogle Scholar

  • Pickhardt, M. and J. Sardà Pons (2006), Size and scope of the underground economy in Germany, Applied Economics, 38(4), pp. 1707-1713.CrossrefGoogle Scholar

  • Pissarides, C. and G. Weber (1989), An expenditure-based estimate of Britain’s black economy, Journal of Public Economics, 39, pp. 17-32.Google Scholar

  • Pommerehne, W.W. and F. Schneider (1985), The decline of productivity growth and the rise of the shadow economy in the U.S., Working Paper 85-9, University of Aarhus.Google Scholar

  • Portes, A. (1996), The informal economy, in: Pozo, S. (ed.), Exploring the Underground Economy, W.E. Upjohn Institute for Employment Research, Kalamazoo, pp. 147-165.Google Scholar

  • Posner, E.A. (2000), Law and Social Norms, Harvard University Press, Cambridge.Google Scholar

  • Pozo, S. (ed.) (1996), Exploring the Underground Economy: Studies of Illegal and Unreported Activity, Michigan: W.E. Upjohn, Institute for Employment Research.Google Scholar

  • Putnins, T. and A. Sauka (2015), Measuring the Shadow Economy Using Company Managers, Journal of Comparative Issues, 43/2, May, pp. 471-490.Google Scholar

  • Remeikiene, R., Gasparenje, L. and F. Schneider (2017), The Definition of Digital Shadow Economy, The Technological and Economic Development of Economy, forthcoming.CrossrefGoogle Scholar

  • Renooy, P., Ivarsson, S., van der Wusten-Gritsai, O. and E. Meijer (2004), Undeclared Work in an Enlarged Union - An Analysis of Undeclared Work: An In-Depth Study of Specific Items, European Commission, Brussels.Google Scholar

  • Rogoff, K. (1998), Blessing or curse? Foreign and underground demand for euro notes, Economic Policy: The European Forum, 26, pp. 261-304.CrossrefGoogle Scholar

  • Sauka, A., Schneider, F. and C.C. Williams (2016), Entrepreneurship and the Shadow Economy, Edward Elgar Publishing Company, Cheltenham (UK).Google Scholar

  • Schneider, F. (1986), Estimating the size of the Danish shadow economy using the currency demand approach: an attempt, The Scandinavian Journal of Economics, 88, pp. 643-668.CrossrefGoogle Scholar

  • Schneider, F. (1994a), Measuring the size and development of the shadow economy. Can the causes be found and the obstacles be overcome?, in: Brandstaetter, H. and W. Güth (eds.): Essays on Economic Psychology, Berlin, Heidelberg, Springer Publishing Company, pp. 193-212.Google Scholar

  • Schneider, F. (1994b), Can the shadow economy be reduced through major tax reforms? An empirical investigation for Austria, Supplement to Public Finance/ Finances Publiques, 49, pp. 137-152.Google Scholar

  • Schneider, F. (1997), The shadow economies of Western Europe, Journal of the Institute of Economic Affairs, 17/3, pp. 42-48.Google Scholar

  • Schneider, F. (1998), Further empirical results of the size of the shadow economy of 17 OECD-countries over time, Paper to be presented at the 54th Congress of the IIPF Cordowa, Argentina and discussion paper, Department of Economics, University of Linz, Linz, Austria.Google Scholar

  • Schneider, F. (2003), The shadow economy, in: Rowley, C.K. and F. Schneider (eds.), Encyclopedia of Public Choice, Kluwer Academic Publishers, Dordrecht.Google Scholar

  • Schneider, F. (2005), Shadow economies around the world: what do we really know?, European Journal of Political Economy, 21(4), pp. 598-642.CrossrefGoogle Scholar

  • Schneider, F. (2007), Shadow Economies and Corruption All Over the World: New Estimates for 145 Countries, Economics, 9, July.Google Scholar

  • Schneider, F. (2010), The Influence of Public Institutions on the Shadow Economy: An Empirical Investigation for OECD Countries, European Journal of Law and Economics, 6/3, pp. 441-468.Google Scholar

  • Schneider, F. (ed.) (2011), Handbook on the Shadow Economy, Edward Elgar, Cheltenham.Google Scholar

  • Schneider, F. (2015), Schattenwirtschaft und Schattenarbeitsmarkt: Die Entwicklungen der vergangenen 20 Jahre, Perspektiven der Wirtschaftspolitik, 16/1, pp. 3-25.Google Scholar

  • Schneider, F. (2016), Comment on Feige’s Paper, Reflections on the Meaning and Measurement of Unobserved Economies: What Do We Really Know About the Shadow Economy?, Journal of Tax Administration Vol. 2/2.Google Scholar

  • Schneider, F. and A. Buehn (2013), Shadow Economies in Highly Developed OECD-Countries: What are the Driving Forces?, Discussion Paper, Department of Economics, University of Linz, Linz, Austria, June 2013.Google Scholar

  • Schneider, F. and D. Enste (2000), Shadow economies: Size, causes, and consequences, The Journal of Economic Literature, 38/1, pp. 77-114.CrossrefGoogle Scholar

  • Schneider, F. and D. Enste (2002), The Shadow Economy: Theoretical Approaches, Empirical Studies, and Political Implications, Cambridge University Press, Cambridge (UK).Google Scholar

  • Schneider, F. and C.C. Willams (2013), The Shadow Economy, IEA, London.Google Scholar

  • Schneider, F. and V. Zukauskas (2016), Microbased Results of Shadow Labour Market in the Baltic States, Poland and Sweden, Applied Economics: Systematic Research, Vol. 10/2, pp. 117-133.Google Scholar

  • Simon, C.B. and A.G. Witte (1982), Beating the System: The Underground Economy, Urban House, Boston, MA.Google Scholar

  • Smith, J.D. (1985), Market motives in the informal economy, in: Gaertner, W. and A. Wenig (eds.), The Economics of the Shadow Economy, Springer, Heidelberg, pp. 161-177.Google Scholar

  • Smith, P. (1994), Assessing the size of the underground economy: the Canadian statistical perspectives, Canadian Economic Observer, 11, pp. 16-33.Google Scholar

  • Tanzi, V. (1980), The underground economy in the United States: estimates and implications, Banca Nazionale del Lavoro, 135, pp. 427-453.Google Scholar

  • Tanzi, V. (ed.) (1982a), The Underground Economy in the United States and Abroad, Lexington Books, Lexington, MA.Google Scholar

  • Tanzi, V. (1982b), A second (and more skeptical) look at the underground economy in the United States, in: Tanzi, V. (ed.), The Underground Economy in the United States and Abroad, Lexington Books, Lexington, MA, pp. 38-56.Google Scholar

  • Tanzi, V. (1983), The underground economy in the United States: annual estimates, 1930-1980, IMF Staff Papers, 30, pp. 283-305.Google Scholar

  • Tanzi, V. (1986), The underground economy in the United States: reply to comments by Feige, Thomas, and Zilberfarb, IMF Staff Papers, 33, pp. 799-811.CrossrefGoogle Scholar

  • Tanzi, V. (1999), Uses and Abuses of Estimates of the Underground Economy, Economic Journal, 109/3, pp. 338-347.Google Scholar

  • Teobaldelli, D. (2011), Federalism and the Shadow Economy, Public Choice, 146/3, pp. 269-269.Google Scholar

  • Teobaldelli, D. and F. Schneider (2012), Beyond the veil of ignorance: The influence of direct democracy on the shadow economy, CESifo Working Paper MO3749, University of Munich, Munich.Google Scholar

  • Thomas, J.J. (1986), The underground economy in the United States: comment on Tanzi, IMF Staff Papers, 33, pp. 782-789.CrossrefGoogle Scholar

  • Thomas, J.J. (1992), Informal Economic Activity, LSE, Handbooks in Economics, Harvester Wheatsheaf, London.Google Scholar

  • Thomas, J.J. (1999), Quantifying the Black Economy: “Measurement Without Theory” Yet Again?, Economic Journal, 109, pp. 381-389.Google Scholar

  • Torgler, B. and F. Schneider (2009), The Impact of Tax Morale and Institutional Quality on the Shadow Economy, Journal of Economic Psychology, 30/3, pp. 228-245.CrossrefGoogle Scholar

  • Van Eck, R. and B. Kazemier (1988), Features of the hidden economy in the Netherlands, Review of Income and Wealth, 34/3, pp. 251-73.CrossrefGoogle Scholar

  • Weck-Hannemann, H. (1983), Schattenwirtschaft: Eine Möglichkeit zur Einschränkung der öffentlichen Verwaltung?, Eine ökonomische Analyze, Bern-Frankfurt.Google Scholar

  • Williams, C.C. (2009), Formal and informal employment in Europe: Beyond dualistic representations, European Urban and Regional Studies, 16/2, pp. 147-159.CrossrefGoogle Scholar

  • Williams, C.C. (2013), Evaluating cross-national variations in the extent and nature of informal employment in the European Union, Industrial Relations Journal, 44/5-6, pp. 479-494.CrossrefGoogle Scholar

  • Williams, C.C. and M.A. Lansky (2013), Informal employment in developed and developing economies: Perspectives and policy responses, International Labour Review, 152/3-4, pp. 355-380.Google Scholar

  • Williams, C.C. and P. Rodgers (2013), The role of informal economies in the post-Soviet world: The end of transition?, Routledge Publishing Company, London.Google Scholar

  • Williams, C.C. and F. Schneider (2016), Measuring the Global Shadow Economy: The Prevalence in Formal Work and Labor, Cheltenham (UK): Edward Elgar Publishing Company 2016.Google Scholar

  • Williams, C.C. and J. Windebank (1995), Black market work in the European Community: peripheral work for peripheral localities?, International Journal of Urban and Regional Research, 19, pp. 23-39.CrossrefGoogle Scholar

  • Witte, A.D. (1987), The nature and extent of unreported activity: a survey concentrating on a recent US research, in: Alessandrini, S. and B. Dallago (eds.), The Unofficial Economy: Consequences and Perspectives in Different Economic Systems, Gower, Aldershot.Google Scholar

  • Zilberfarb, B.-Z. (1986), Estimates of the underground economy in the United States, 1930-80, IMF Staff Papers, 33, pp. 790-798.CrossrefGoogle Scholar

About the article

Received: 2017-02-01

Accepted: 2017-02-28

Published Online: 2017-09-02

Published in Print: 2018-06-01


Citation Information: Open Economics, Volume 1, Issue 1, Pages 1–29, ISSN (Online) 2451-3458, DOI: https://doi.org/10.1515/openec-2017-0001.

Export Citation

© 2017. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. BY-NC-ND 4.0

Comments (0)

Please log in or register to comment.
Log in