The underground economy cannot be measured with precision, but numerous plausible estimates suggest that it is large and growing, particularly in OECD countries. Unless policy makers are prepared to see this trend continue, they must reduce the burden of taxes and social security contributions.
Dimensions of the Shadow Economy
By Friedrich Schneider
This
article
appeared in
the Summer 2000 issue of The Independent Review.
Bureaucracy and GovernmentEconomic History and DevelopmentEconomic PolicyEconomyFree Market EconomicsGovernment and PoliticsGovernment PowerPublic ChoiceRegulationTaxes