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Title:Corruption and the shadow economy: a structural equation model approach PDF Logo
Authors:Buehn, Andreas
Schneider, Friedrich G.
Issue Date:2009
Series/Report no.:IZA discussion papers 4182
Abstract:The relationship between corruption and the shadow economy is not clear. Theoretically, they either substitute or complement each other -exhibiting either a negative or positive relationship. This paper -using a structural equation model with two latent variables - extracts information on various dimensions of corruption and the shadow economy to contribute to the debate on their relationship. It presents empirical evidence of a positive relationship between the shadow economy and corruption. The results show that the shadow economy influences corruption more than corruption influences the shadow economy.
Subjects:Shadow economy
corruption
SEM models
JEL:O17
O5
D78
H11
H26
Persistent Identifier of the first edition:urn:nbn:de:101:1-2009061268
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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