On the Relationship Between Income Inequality and the Shadow Economy View Full Text


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Article Info

DATE

2019-04

AUTHORS

Aziz N. Berdiev, James W. Saunoris

ABSTRACT

We empirically investigate the linkages between income inequality and the shadow economy. Employing a panel vector autoregression model, we build impulse response functions to study the time path of income inequality following a shock to the shadow economy, and vice versa. Our results using panel data for 144 countries over the period 1960–2009 reveal a bidirectional positive relationship between the two: specifically, higher income inequality promotes the spread of the shadow economy while the development of the shadow economy contributes to income inequality. Overall, these findings withstand a variety of robustness checks. More... »

PAGES

224-249

References to SciGraph publications

Identifiers

URI

http://scigraph.springernature.com/pub.10.1057/s41302-018-0120-y

DOI

http://dx.doi.org/10.1057/s41302-018-0120-y

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1107245648


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