The Economics of the Hidden Economy - 9781843763543

This two-volume work brings together 53 articles from the economics literature on shadow economies (or "underground," "black," or "informal" economies, i.e. those economic activities that avoid applicable taxes or trade regulations). Schneider (economics, Johanes Kepler U. of Linz, Austria) first presents four literature survey articles, followed by five articles on conceptual issues, including the demand for currency related to the total money supply, politics and the underground economy, measurement of the underground economy and its implications for econometric modeling, and market motives in the informal economy. Micro- and macro-theoretical approaches are then discussed in reference to labor demand and supply, progressive income taxation, and other issues. Six papers, concluding the first volume, then explore policy implications, specifically discussing the macroeconomic consequences of the underground economy, implications for the welfare state, tax systems and structures, and business cycle properties. The second volume opens with 19 empirical papers that examine such topics as bribes and unofficial activity in post-communist transition countries, the characteristics of the Australian and German shadow economies, the shadow economy and national accounts, estimates of the underground economy in the United States, the relationship between tax evasion and the demand for currency in Norway and Sweden, the labor market and tax evasion, the effect of taxes on labor supply in the underground economy, and unauthorized Mexican immigration and day labor employment in California. The final 12 papers are grouped into sections on the related areas of tax evasion and tax compliance, tax morale, and government institutions. With a couple of exceptions, all papers were first published between 1980 and 2007. Annotation ©2009 Book News, Inc., Portland, OR (booknews.com)