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The Encyclopedia of Public Choice pp 286–296Cite as

Shadow Economy

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Abstract

Crime and shadow economic activities are a fact of life around the world, and almost all societies engage in trying to control these activities through education, punishment, or prosecution. Gathering statistics about who is active in the shadow economy activities, the frequency with which underground activities occur and the magnitude of these activities, is crucial for making effective and efficient decisions regarding allocating resources in this area. Obviously it is difficult to get accurate information about underground or shadow economy activities because individuals engaged in these activities wish to remain unidentified. Hence, estimation of shadow economy activities can be considered as a scientific passion for knowing the unknowable.

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Authors
  1. Friedrich Schneider
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Editors and Affiliations

  1. The Locke Institute, George Mason University, USA

    Charles K. Rowley

  2. Institute of Economic Policy, Johannes Kepler University of Linz, Austria

    Friedrich Schneider

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© 2004 Kluwer Academic Publishers

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Schneider, F. (2004). Shadow Economy. In: Rowley, C.K., Schneider, F. (eds) The Encyclopedia of Public Choice. Springer, Boston, MA. https://doi.org/10.1007/978-0-306-47828-4_24

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  • DOI: https://doi.org/10.1007/978-0-306-47828-4_24

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-0-7923-8607-0

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