Mechanizmy kształtowania się szarej strefy gospodarki. Model teoretyczny
Driving Forces of the Shadow Economy. Theoretical Model

Summary/Abstract: We present theoretical model of shadow economy. The model includes not only economic factors, such as tax burden or fines for unregistered activity, but also legal and organizational background factors, such as level of bureaucracy (corruption), quality of public sector services and institutions, or tax morale. In the proposed model shadow economy arises as a result of interactions between economic entities – government and households. The Nash Equilibrium level of shadow economy is derived and comparative statics analysis is presented.

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