The purpose of this paper is to try to analyze the Shadow Economy (SE) and its determinants by means of the Structural Equation Model (SEM) - Partial Least Squares (PLS). The overall topic of the SEM-PLS approach is controversially debated in literature. In the past decades, the focus on the SE has increased and the range in the estimated size of this phenomenon is very divergent. By examining the effects of a set of indicators, economic theory often emphasizes the need for lower taxes and less regulation, but many other factors such as administrative quality are frequently neglected. Policy implications are discussed. Estimates for the SE as a percentage of the GDP can be calculated and European countries are accorded to the obtained results
The shadow economy beyond European public governance
QUINTANO, Claudio;MAZZOCCHI, Paolo
2013-01-01
Abstract
The purpose of this paper is to try to analyze the Shadow Economy (SE) and its determinants by means of the Structural Equation Model (SEM) - Partial Least Squares (PLS). The overall topic of the SEM-PLS approach is controversially debated in literature. In the past decades, the focus on the SE has increased and the range in the estimated size of this phenomenon is very divergent. By examining the effects of a set of indicators, economic theory often emphasizes the need for lower taxes and less regulation, but many other factors such as administrative quality are frequently neglected. Policy implications are discussed. Estimates for the SE as a percentage of the GDP can be calculated and European countries are accorded to the obtained resultsI documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
