Business and Management INK

A Glimpse Into the Shadow Economy

August 20, 2013 623

By its very nature, the shadow economy is difficult to define. The new Special Issue of Public Finance Review, “The Shadow Economy, Tax Evasion, and Money Laundering,” introduces  research by leading scholars which attempts to clarify the causes and consequences of this global phenomenon. In the lead article, PFR Editor James Alm of Tulane University and Abel Embaye of the University of Arkansas write:

PFR_72ppiRGB_150pixwThe presence of untaxed activities—known as the shadow economy, the black economy, the underground economy , among other terms—is a common occurrence in all countries around the world. Its presence dis- torts resource allocation, changes t he distribution of income in unpredictable ways, and reduces tax collections. In response, governments take many steps to reduce its size. However, these efforts require knowledge of its size, and such estimates are quite difficult to generate. Many methods have been developed to estimate the size of the shadow economy; see especially Schneider and Enste (2000) and Schneider (2005) for comprehensive discussions of these methods and their resulting estimates. In this article , we build on this previous research. We apply dynamic panel estimation methods to the currency demand method, in order to estimate the size of the shadow economy for 111 countries for the years 1984–2006.

Read the article, “Using Dynamic Panel Methods to Estimate Shadow Economies Around the World, 1984–2006,” in the September issue of Public Finance Review, and don’t miss the rest of this Special Issue: The Shadow Economy, Tax Evasion, and Money Laundering.

Business and Management INK puts the spotlight on research published in our more than 100 management and business journals. We feature an inside view of the research that’s being published in top-tier SAGE journals by the authors themselves.

View all posts by Business & Management INK

Related Articles

From Collision to Collaboration: Bridging University and Industry Relationships
Business and Management INK
May 17, 2024

From Collision to Collaboration: Bridging University and Industry Relationships

Read Now
Motivation of Young Project Professionals: Their Needs for Autonomy, Competence, Relatedness, and Purpose
Business and Management INK
May 14, 2024

Motivation of Young Project Professionals: Their Needs for Autonomy, Competence, Relatedness, and Purpose

Read Now
A Complexity Framework for Project Management Strategies
Business and Management INK
May 10, 2024

A Complexity Framework for Project Management Strategies

Read Now
Bringing Theories into Conversation to Strategize for a Better World
Business and Management INK
May 8, 2024

Bringing Theories into Conversation to Strategize for a Better World

Read Now
Exploring Discrimination Faced by Asian Nationals in the U.S. Labor Market

Exploring Discrimination Faced by Asian Nationals in the U.S. Labor Market

Amit Kramer, Kwon Hee Han, Yun Kyoung Kim, and Yun Kyoung Kim reflect on the hypotheses and observations that led to their article, “Inefficiencies and bias in first job placement: the case of professional Asian nationals in the United States.”

Read Now
Interorganizational Design for Collaborative Governance in Co-Owned Major Projects: An Engaged Scholarship Approach

Interorganizational Design for Collaborative Governance in Co-Owned Major Projects: An Engaged Scholarship Approach

Large projects co-owned by several organizations with separate, perhaps competing, interests and values are characterized by complexity and are not served well […]

Read Now
Uncharted Waters: Researching Bereavement in the Workplace

Uncharted Waters: Researching Bereavement in the Workplace

To me, one of the most surprising things about bereavement is its complexity and that it can last far longer than expected. This is challenging to navigate at work where, unless it was a coworker’s death, no one else’s world has changed.

Read Now
0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments