Méon, Pierre-Guillaume; Mazhar, Ummad - Centre Emile Bernheim, Solvay Brussels School of … - 2012
larger the size of the shadow economy. In a sample of developed and developing countries over the 1999-2007 period, we indeed … report a negative relation between the tax burden and the size of the shadow economy, and a positive relation between … inflation and the size of the shadow economy. We provide evidence that both are conditional on central bank independence and the …