The impact of tax morale and institutional quality on the shadow economy

Arbeitspapier

This paper analyses how tax morale and countries’ institutional quality affect the shadow economy, controlling in a multivariate analysis for a variety of potential factors. The literature strongly emphasizes the quantitative importance of these factors to understand the level and changes of shadow economy. Relatively new available data sources offer the unique opportunity to shed more light in the understanding of a topic that has received an increased attention. We find strong support that a higher tax morale and a higher institutional quality lead to a smaller shadow economy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 0702

Classification and Topics

• Classification: Wirtschaft ; Bureaucracy; Administrative Processes in Public Organizations; Corruption ; Positive Analysis of Policy Formulation and Implementation ; Tax Evasion and Avoidance ; Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
• Subject: Shadow economy ; tax morale ; institutional quality ; government intervention ; corruption ; Schattenwirtschaft ; Steuermoral ; Institutionelle Infrastruktur ; Wirtschaftspolitik ; Korruption ; Schätzung ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schneider, Friedrich ; Torgler, Benno
• Event: Veröffentlichung
• (who): Johannes Kepler University of Linz, Department of Economics
• (where): Linz
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/73207
• Last update: 10.03.2025, 11:45 AM CET