Corruption and the shadow economy
Corruption and the shadow economy
复制标题
腐败与影子经济
DOI:
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复制
发表时间:
2006
期刊:
影响因子:
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通讯作者:
F. Schneider
中科院分区:
文献类型:
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作者:
A. Dreher;F. Schneider
This paper develops a simple framework to analyze the links between corruption and the unofficial economy and their implications for the official economy. In a model of self-selection with heterogeneous entrepreneurs, we show that the entrepreneurs’ option to flee to the underground economy constrains a corrupt official’s ability to introduce distortions to the economy for private gains. The unofficial economy thus mitigates government-induced distortions and, as a result, leads to enhanced economic activities in the official sector. In this sense, the presence of the unofficial sector acts as a complement to the official economy rather than a substitute.