[go: up one dir, main page]

  EconPapers    
Economics at your fingertips  
 

Beyond the Veil of Ignorance: The Influence of Direct Democracy on the Shadow Economy

Friedrich Schneider () and Désirée Teobaldelli

No 3749, CESifo Working Paper Series from CESifo

Abstract: In this paper we analyze the influence of direct democratic institutions on the size and development of the shadow economies. The framework developed predicts a negative relationship between the degree of direct democracy and the size of the shadow economy. Countries where direct democratic institutions support democratic life are expected to be characterized by a lower informal sector, ceteris paribus. The empirical / econometric investigation of a sample of 56 democracies confirms our core hypothesis and demonstrates that the effect of direct democratic institutions on the shadow economy is negative and quantitatively important; the results are robust and also depend on the interaction of direct democracy with other political institutions, such as district magnitude.

Keywords: shadow economy; direct democratic institutions; district magnitude; good governance (search for similar items in EconPapers)
JEL-codes: D78 H11 H26 O17 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp3749.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_3749

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2024-12-06
Handle: RePEc:ces:ceswps:_3749