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Title:Size and development of the shadow economy and of do-it-yourself activities in Germany PDF Logo
Authors:Bühn, Andreas
Karmann, Alexander
Schneider, Friedrich G.
Issue Date:2007
Series/Report no.:CESifo working paper 2021
Abstract:This paper presents the first MIMIC (multiple indicator multiple causes) model estimate of the size and development of the shadow economy and of do-it-yourself (DIY) activities in Germany from 1970 to 2005. By 2005, they reached a level of about 17% and 4.94%. While the shadow economy has regularly increased over the years, DIY activities – though quite sizeable – have remained more or less constant since the early 1990s. The driving forces for the shadow economy are regulation and tax burden whereas for DIY activities, the level of unemployment is the main factor.
JEL:O17
O5
D78
H2
H11
H26
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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