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The shadow economies of Western Europe
Author(s) -
Schneider Friedrich
Publication year - 1997
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00041
Subject(s) - shadow (psychology) , economics , economy , government (linguistics) , psychology , linguistics , philosophy , psychotherapist
The latest empirical research indicates a strong increase in the size of the shadow economy in Western Europe, over the period 1970 to 1990. For 11 of the 17 investigated OECD‐countries the size of the shadow economy in 1990 was more than 10% of GNP. Analysis shows that the major causes of the shadow economy are the direct and indirect tax burden, and government regulation.