Shadow Economy Worsens Income distribution

Corruption, Shadow Economy and Income Inequality: Evidence from Asia

Corruption, Shadow Economy and Income Inequality: Evidence from Asia A number of recent studies for Latin America show that as the size of the informal economy grows, corruption is less harmful to inequality. We investigate if this relationship is equally compelling for developing countries in Asia where corruption, inequality and shadow economies are considerably large. We use Panel Least Squa...

Religion and the Shadow Economy

Religion is increasingly acknowledged to be a cultural dimension which affects economic outcomes in different regards. This contribution focuses on religion’s possible impact on the shadow economy. Different dimensions of the religious markets are taken into account. These dimensions refer to the overall degree of religiosity, the specific impact of different religions, religious competition or...

Corruption and the Shadow Economy

This paper develops a simple framework to analyze the links between corruption and the unofficial economy and their implications for the official economy. In a model of self-selection with heterogeneous entrepreneurs, we show that the entrepreneurs’ option to flee to the underground economy constrains a corrupt official’s ability to introduce distortions to the economy for private gains. The un...

Corruption’s Reflection: Iraq’s Shadow Economy

Accurate economic intelligence is critical in designing policies, strategies and investments for Iraq ’s economic recovery. Unfortunately, very little is known about the country’s economic progress over the last several decades,[2] let alone the current situation. There are huge gaps in even the most routine data compiled by nearly every country. The International Monetary Fund, for instance, d...

Production and Distribution of Income in a Market Economy