Lurking in the shadows: the informal sector and government policy

Ihrig, Jane E.; Moe, Karine S.

doi:10.1016/j.jdeveco.2003.04.004

Cited by 279 publications

(189 citation statements)

References 11 publications

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“…And, in what follows, this paper agrees with Mazhar and Pierre-Guillaume (2012) and disagrees with Ihrig and Karine (2004) or Dabla-Norris et al (2008) about the "tax-size" relationship, and disagrees with Mazhar and Pierre-Guillaume (2012) about the "inflation-size" relationship in so far as political stability rather than instability a la Cukierman et al (1992) and Huang and Shang-Jin (2006) is the case.…”

supporting

confidence: 53%

An Anti-Austerity Policy Recipe Against Debt Accumulation in the Presence of Hidden Economy

Soldatos

2016

Asian Economic and Financial Review

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supporting

confidence: 53%

An Anti-Austerity Policy Recipe Against Debt Accumulation in the Presence of Hidden Economy

Soldatos

2016

Asian Economic and Financial Review

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“…Ihrig and Moe(2004) develop a dynamic model to explain the evolution of the informal sector towards steady state. They show that exogenous reduction in tax rates reduce the size of the informal sector, whereas in our paper the relation depends on the skill distribution and identity of the median voter.…”

Section: Introductionmentioning

confidence: 99%

On the political economy of the informal sector and income redistribution

Hatipoglu¹,

Ozbek

2010

Eur J Law Econ

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In this paper we analyze a general equilibrium model in which agents choose to be employed in formal or in the informal sector. The formal sector is taxed to provide income subsidies and the level of redistribution is determined endogenously through majority voting. We explore how the demand for redistribution determined by majority voting interacts with the incentive to work in the untaxed informal market. We also investigate how different levels of the informal sector wage can explain simul-

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“…Feige (1979Feige ( , 1990 argued that unofficial economy includes activities which are not reported and unable to be measured directly. Ihrig and Moe (2004) were of the view that an unofficial economy may include a legal production industry but this industry is not appropriate to be in existence in the economy or with the government's regulations. In addition, Frey and Pommerehne (1984); Loayza (1996) ;Johnson, Kaufmann and Shleifer (1997) ;Johnson, Kaufmann và Zoido-Lobaton (1998; Thomas (1999);Fleming (2000); Enste (2000, 2002); Dell'Anno and Schneider (2003); Schneider (2005Schneider ( , 2006Schneider ( , 2007Schneider ( , 2010Schneider ( , 2012Schneider ( , 2013 and many other studies have also adopted a very similar definition of the unofficial economy.…”

Section: A Brief Discussion On the Unofficial Economymentioning

confidence: 99%

Any Link between Unofficial Economy and Official Economy? An Empirical Evidence from the ASEAN

Vo¹,

Pham²

2014

IJEF

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This purpose of this study is to examine a possible link between unofficial economy and official economy for the ASEAN from 1996 to 2013. The unofficial economy is technically unobservable. As such, the MIMIC approach, which will estimate the unobservable variable using different observable variables, is utilized in this study. The findings from this study indicate that when the official economy is proxied by the GDP or the GDP per capita, the unofficial economy negatively contributes to the official economy. The effect from the unofficial economy to the official economy is more significant to the GDP than to the GDP per capita. We argue that it may be the time to move away from the conventional approach adopted by the governments in the ASEAN in controlling the unofficial economy in the forms of punishment and education. A more appropriate approach to control a growth of the unofficial economy is to adopt a more comprehensive and systematic review of tax and social security contributions burdens; regulations and others which are well evidenced and documented in the literature of the shadow economy.

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Lurking in the shadows: the informal sector and government policy

Cited by 279 publications

References 11 publications

An Anti-Austerity Policy Recipe Against Debt Accumulation in the Presence of Hidden Economy

An Anti-Austerity Policy Recipe Against Debt Accumulation in the Presence of Hidden Economy

On the political economy of the informal sector and income redistribution

Any Link between Unofficial Economy and Official Economy? An Empirical Evidence from the ASEAN

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