The devil is in the shadow. Do institutions affect income and productivity or only official income and official productivity
Bibliographic Data
| ID | 10933012 |
|---|---|
| Authors | Axel Dreher (0000-0002-4017-8570, University of Göttingen, corresponding author), Pierre-Guillaume Méon, Pierre‐guillaume Méon (0000-0003-1740-2922, Université Libre de Bruxelles), Friedrich Schneider (0000-0001-6742-5896, Johannes Kepler University of Linz) |
| Year | 2014 |
| Volume | 158 |
| Issue | 1-2 |
| Pages | 121-141 |
| Publication date | 2014-01-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Public Choice (JOURNAL) |
| Journal identifiers | ISSN: 0048-5829 • E-ISSN: 1573-7101 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s11127-012-9954-8 |
| OpenAlex | W3125798312 |
| Language | EN |
| Citations received | 11 |
| References cited | 41 |
This paper assesses the relationship between institutions, output, and productivity when official output is corrected for the size of the shadow economy. Our results confirm the usual positive impact of institutional quality on official output and total factor productivity, and its negative impact on the size of the underground economy. However, once output is corrected for the shadow economy, the relationship between institutions and output becomes weaker. The impact of institutions on total (“corrected”) factor productivity becomes insignificant. Differences in corrected output must then be attributed to differences in factor endowments. These results survive several tests for robustness
Affect (linguistics · Demographic economics · Economics · Economy · Labour economics · Macroeconomics · Productivity · Public finance · Robustness (evolution · Shadow (psychology · Total factor productivity · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Taxation and Compliance Studies
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Shadow Economies
Institutions Rule
Institutions and Economic Performance
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Fractionalization
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Governance Matters III
How Corruption Affects Productivity
The multiple facets of social capital
Sources of Growth Revisited
What causes firms to hide output? The determinants of informality
Federalism and the shadow economy
Corruption and the shadow economy
The ‘informal sector’ and the political economy of development
Governance and Growth
Uses and Abuses of Estimates of the Underground Economy
The Unofficial Economy in Transition
The Informal Sector in Developed and Less Developed Countries
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| Citations per year | 0.73 |
|---|---|
| Citation span | 2011 - 2026 (16) |
| Highly cited | No |