In most OECD countries THE policy instrument of choice to prevent people from working in the shadows has been deterrence. While deterrence is well-founded from a theoretical point of view, the empirical evidence on its success is weak: tax policies and state deregulation appear to work much better. The discussion of the recent literature underlines that in addition economic opportunities, the o...

We analyze, both theoretically and empirically, the influence of direct democratic institutions on the size and development of shadow economies. Our model suggests that, as the extent of direct democracy increases, implemented fiscal policies more nearly reflect the preferences of citizens and so reduce their incentives to operate in the informal sector. This theory implies a negative relations...

The study is devoted to verification the hypothesis that a higher tax burden does not necessarily lead growth in shadow economy Russian regions. cross-regional comparative analysis was undertaken measure influence of on economy. used Rosstat workforce surveys data about number informal workers nationwide and by sector from 2007 2019. Stochastic factor examine relationship between share such fac...