The shadow economy in three Mediterranean countries: France, Spain and Greece. A MIMIC approach

Abstract

In the original article the spelling of the last author's name was incorrect. The correct name is Angel Alañon-Pardo.

Testing the relationships between shadow economy and unemployment: empirical evidence from linear and nonlinear tests

“…This unexpected result may possibly be explained by the reliability of the Greek Data. As noted by Dell ' Anno, Antonio, and Pardo (2007) , the results for Greece should be interpreted with caution as Greek National accounts have been revised by inflating them approximately by 28% since 1988. An alternative explanation may be that in Greece the nature of the causal linkage between the variables is on the basis of non-linearity as will be shown in the next sub-section.…”

“…Do high levels of unemployment tend to have a higher share of the informal economy in total GDP or does a stronger shadow economy lead to increased unemployment rates ? From a theoretical point of view, the relationship between unemployment and the shadow economy is ambiguous (see Tanzi 1999 ;Giles and Tedds 2002 ;Dell ' Anno, Antonio, and Pardo 2007 ). As Tanzi (1999 , 347) points out, " the current literature does not cast much light on these relationships even though the existence of large underground activities would imply that one should look more deeply at what is happening in the labor market. "…”

“…However, the shadow economy tends to rise with the growth of the official economy. Another reason forwarded for this positive causal relationship is that a substantial increase in unemployment can provide an important incentive to participate in the shadow economy ( Dell ' Anno, Antonio, and Pardo 2007 ). Theory, however, cannot tell us which, if any of these two antagonistic forces dominates.…”

One Share Fits All? Regional Variations in the Extent of the Shadow Economy in Europe

“…However, those engaged in shadow activities might be more reluctant to report themselves as participating in the labour market. As a result, the relation of this indicator with the latent variable is also a priori unclear (DELL'ANNO et al, 2007).…”

Tax reforms and the underground economy: a simulation-based analysis

“…On the one hand, there exists a positive relationship between the dimension of the tax burden on economic activity and the size of the informal economy. 1 See the evidence provided by Schneider (1997), Cebula (1997), Johnson et al (1998), Giles et al (2002), Dell'Anno et al (2007), Buehn and Schneider (2012), Giles and Caragata (2001), Tanzi (1999), Schneider and Enste (2000), and Feld and Schneider (2010). On the other hand, just as the tax burden contributes to determine the size of the shadow economy, the shadow economy itself affects the outcome of fiscal reforms.…”