@techreport{Choi2003Corruption,
abstract = {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 unofficial economy thus mitigates government-induced distortions and, as a result, leads to enhanced economic activities in the official sector. In this sense, the presence of the unofficial sector acts as a complement to the official economy rather than a substitute.},
address = {Dresden},
author = {Jay Pil Choi and Marcel Thum},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D9; H2; K4; L1; 330; corruption; shadow economy; official economy; self-selection; Korruption; Schattenwirtschaft; Wohlfahrtseffekt; Theorie},
language = {eng},
number = {02/03},
publisher = {Techn. Univ., Fak. Wirtschaftswiss.},
title = {Corruption and the shadow economy},
type = {Dresden discussion paper in economics},
url = {http://hdl.handle.net/10419/48125},
year = {2003}
}
