The article addresses a topical issue which is extremely relevant in crisis periods – evaluation of the level of the shadow economy in all Lithuanian regions. By applying the MIMIC modelling, three ...equations were developed for three different periods: economic upturn, economic downturn (crisis) and economic recovery. The number of immigrants, employment rate and population’s density were identified as the major shadow economy determinants in Lithuanian regions. The determinants identified are unique in the case of Lithuania because they reveal that the labour market (employment rate, the number of immigrants) and population’s density are the key factors that show how municipalities address the issues of the shadow economy. 10 municipalities with respectively high or low levels of the shadow economy were ranked for each period under consideration. The maps developed for different periods illustrate the general trends of the evolution of the shadow economy. This is the first study that estimates the size of the shadow economy in 60 municipalities (a small regional division) with different economic periods taken into account. Scientific novelty manifests through consideration of the regional shadow economy and proving significance of the labour market and immigration in reducing regional disparities.
This paper estimates the energy demand function to examine the asymmetric relationship between the shadow economy and energy consumption in the case of Bolivia during the period of 1960–2015. The ...ambiguous empirical findings on shadow economy-energy demand nexus has inclined us to apply the nonlinear ARDL cointegration approach developed by Shin et al. (2014) and the Hatemi-J (2012) asymmetric causality test. The empirical evidence confirms the presence of an asymmetric relationship between the variables of interest. Positive and negative shocks to official GDP (true GDP) and the shadow economy have positive impacts on energy consumption. Energy consumption is positively and negatively affected by positive and negative shocks in financial development, respectively. A positive (negative) shock to capital decreases energy consumption. Another important finding concerns the complex causal direction between economic growth and energy consumption. This study provides new insights regarding to the use of official GDP (true GDP) and the shadow economy as economic tools to maintain energy demand for sustainable economic development.
•Asymmetric of shadow economy in the energy-growth nexus is examined in Bolivia.•Nonlinear cointegration and causality approaches on quarterly data over 1960–2015.•Shadow economy has a positive impact on energy consumption.•Efficient policies to control energy consumption through the unrecorded economy.•Natural gas production is a good channel to increase economic growth.
This paper examines the dynamic relationship between financial development and the shadow economy using data for 161 countries over the period 1960–2009. Specifically, we use a panel vector ...autoregression model to construct impulse response functions that illustrate the time path of one variable (e.g., the shadow economy) following an orthogonal shock to another variable (e.g., financial development). We find that financial development reduces the size of the shadow economy. Moreover, there is some evidence of reverse causality between these variables; namely, a shock to shadow economy inhibits financial development.
•The results suggest that financial development shrinks the shadow economy.•There is some evidence of reverse causality between these two variables.•The findings are robust across several measures of financial development.•The results suggest some differences across level of financial development.•Impulse response functions illustrate significant dynamic interrelationships.
This paper surveys the literature on the definitions and theories of the informal economy (IE). It outlines the main differences in the definitional approaches of informality and proposes a ...definition for the IE that may be consistent with measurement and policy. The literature review distinguishes three, not mutually exclusive, approaches to the IE: the “neoclassical,” the “macro‐econometric,” and the “conceptual” perspectives. I conclude the survey by outlining a framework that points out the main differences and similarities among the schools of thought on the nature of the IE. From a normative perspective, a leading recommendation emerges: a “one‐size‐fits‐all” policy response is inadequate to deal with the heterogeneous nature of the IE. Policy measures should be tailored around the distinct segments of the IE grounded in terms of characteristics, contexts, and needs of the informal units.
Informational Autocrats Guriev, Sergei; Treisman, Daniel
The Journal of economic perspectives,
11/2019, Letnik:
33, Številka:
4
Journal Article
Recenzirano
Odprti dostop
In recent decades, dictatorships based on mass repression have largely given way to a new model based on the manipulation of information. Instead of terrorizing citizens into submission, ..."informational autocrats" artificially boost their popularity by convincing the public they are competent. To do so, they use propaganda and silence informed members of the elite by co-optation or censorship. Using several sources, including a newly created dataset on authoritarian control techniques, we document a range of trends in recent autocracies consistent with this new model: a decline in violence, efforts to conceal state repression, rejection of official ideologies, imitation of democracy, a perceptions gap between the masses and the elite, and the adoption by leaders of a rhetoric of performance rather than one aimed at inspiring fear.
Debt Enforcement around the World Djankov, Simeon; Hart, Oliver; McLiesh, Caralee ...
The Journal of political economy,
12/2008, Letnik:
116, Številka:
6
Journal Article
Recenzirano
Odprti dostop
Insolvency practitioners from 88 countries describe how debt enforcement will proceed against an identical hotel about to default on its debt. We use the data on time, cost, and the likely ...disposition of the assets (preservation as a going concern vs. piecemeal sale) to construct a measure of the efficiency of debt enforcement in each country. This measure is strongly correlated with per capita income and legal origin and predicts debt market development. Several characteristics of debt enforcement procedures, such as the structure of appeals and availability of floating charge finance, influence efficiency.
This paper develops and estimates an equilibrium model where heterogeneous firms can exploit two margins of informality: (i) not register their business, the extensive margin; and (ii) hire workers ...“off the books,” the intensive margin. The model encompasses the main competing frameworks for understanding informality and provides a natural setting to infer their empirical relevance. The counterfactual analysis shows that once the intensive margin is accounted for, firm and labor informality need not move in the same direction as a result of policy changes. Lower informality can be, but is not necessarily associated with higher output, TFP, or welfare.
This paper examines a causal relationship between the flattening of a government hierarchy and economic performance by exploiting a panel data set on government reorganization in China from 1995 to ...2012. Delayering has led to increases in revenue and inter-governmental transfers for county governments, but the associated enlarged span of control makes it difficult for upper-level governments to coordinate and monitor local ones. This has led to a reduction in county governments' total public expenditure and pro-growth expenditure, as well as an increase in land corruption. Overall, the flattening of the government hierarchy has a negative effect on economic performance.
This paper examines whether a target-based performance evaluation system can properly motivate local bureaucrats to implement an environmental regulation policy at the cost of slow economic growth. ...In late 2005, the Chinese central government made cutting sulfur dioxide (SO2) emissions the main performance evaluation criterion for prefectural city mayors and Party secretaries. Using a difference-in-differences framework, we find that the performance evaluation system caused a significant decrease in SO2 emissions, as well as in the GDP growth rate. Our mechanism analyses further corroborate that local bureaucrats in Two Control Zone cities were willing to trade off GDP growth to achieve the more stringent emissions reductions goal. Our findings contribute to the understanding of multitasking agency problems for government agents.
•Emissions reductions quota significantly decreases SO2 emissions.•There is a substantial trade-off between SO2 emissions and real GDP growth rates.•Encouraging effort on one task might decrease effort on other tasks.
This study analyzes the effects of corruption and institutional quality on shadow economy to test the hypothesis of greasing and sanding the wheels of corruption. After empirically studying 29 Asian ...countries, our results indicate that corruption and institutional quality have a positive and negative impact on shadow economy, respectively. Furthermore, the interaction of corruption and economic freedom has a negative impact on shadow economy, whereas corruption and democracy have a positive impact on shadow economy, confirming that corruption works better to 'grease of the wheels' in weak economic institutions conditions and in strong political institutions conditions.
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