Munich Personal RePEc Archive

Causes and consequences of underground economy

Mara, Eugenia-Ramona (2011): Causes and consequences of underground economy. Published in: Annals. Economic Science Series , Vol. XVII, (2011): pp. 1109-1117.

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Abstract

In this endeavor an attempt has been made to investigate the major causes and factors of influence of the underground economy. Our analysis is based on the study of tax payer behavior and taxation system pattern. The paper examines how social institutions and government policies affect underground economy. All these factors have an important impact on the level and size of underground economy and determine the consequences of this phenomenon.

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