{"product_id":"the-shadow-economy-a-critical-analysis-von-dennis-ducke-gabor-ivanyi-mark-kan","title":"The Shadow Economy - A Critical Analysis","description":"\u003cp\u003eSeminar paper from the year 2008 in the subject Business economics - General, grade: 1,3, University of Applied Sciences Essen, language: English, abstract: According to the ¿Focus¿ magazine approximately 13 million Germans contributed to\u003c\/p\u003e\u003cp\u003ethe shadow economy in 2006! The estimations of Friedrich Schneider, one\u003c\/p\u003e\u003cp\u003edistinguished expert in this area, showed that the extent of the shadow economy in\u003c\/p\u003e\u003cp\u003eGermany in 2007 was about 349 billion Euros, which equals to 14.7 percent of\u003c\/p\u003e\u003cp\u003eGermany¿s gross domestic product (GDP)!\u003c\/p\u003e\u003cp\u003eThe scope of the present assignment is to provide an all-embracing and critical\u003c\/p\u003e\u003cp\u003eoverview of the shadow economy, to introduce the main causes, effects and dimensions\u003c\/p\u003e\u003cp\u003eof the shadow economy and to find answer the question how shadow activities can be\u003c\/p\u003e\u003cp\u003elimited.\u003c\/p\u003e\u003cp\u003eIn this context the hidden sector can be defined as all economic activities that are not\u003c\/p\u003e\u003cp\u003erecorded in the national accounts, but normally should be a part of them and be included\u003c\/p\u003e\u003cp\u003ein GDP. These actions can be on the one hand absolutely legal in the self-sufficient\u003c\/p\u003e\u003cp\u003eeconomy like do-it-your-self, neighbourhood help, but on the other hand completely\u003c\/p\u003e\u003cp\u003eillegal activities like dealing with drugs and smuggling as well as legal activities, which\u003c\/p\u003e\u003cp\u003eare illegally being carried out, e.g. tax evasion or illicit work.\u003c\/p\u003e\u003cp\u003eThe main and most vital reasons for the existence and constant growth of the shadow\u003c\/p\u003e\u003cp\u003eeconomy are high taxes or social security contributions burden and the intensity of state\u003c\/p\u003e\u003cp\u003eregulations. But also sociological-psychological causes like subjective perception of tax\u003c\/p\u003e\u003cp\u003eburden, falling society values, a bad tax morale and declining loyalty towards the state\u003c\/p\u003e\u003cp\u003ecan have a tremendous impact on the size of the hidden economy.\u003c\/p\u003e\u003cp\u003eBut is the shadow economy a threat to the official sector? At first glance, the question\u003c\/p\u003e\u003cp\u003ewhether the shadow economy is dangerous might appear strange. However, there are\u003c\/p\u003e\u003cp\u003eseveral controversial opinions about this matter. The analysis of the effects caused by\u003c\/p\u003e\u003cp\u003ethe existence and the growth of the shadow economy is a contradictory topic. The\u003c\/p\u003e\u003cp\u003epresent assignment characterizes the main negative, e.g. distortion of official economic statistics, lower tax revenues and positive effects, e.g. price stabilization, creation of\u003c\/p\u003e\u003cp\u003enew jobs of the shadow economy and their influence on the national economy.\u003c\/p\u003e\u003cp\u003eFollowing this, the study presents the most popular methods of measuring the shadow\u003c\/p\u003e\u003cp\u003eeconomy: direct methods that are mostly based on surveys, the indirect ones that\u003c\/p\u003e\u003cp\u003eattempt to quantify shadow economic activities by seeking traces left in the official\u003c\/p\u003e\u003cp\u003esector and the so-called model approach, which tries to determine the hidden economy\u003c\/p\u003e\u003cp\u003eby ...\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783640533855\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783640533855","offer_id":39430131581021,"sku":"9783640533855","price":27.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/0ed7ce8f-541c-4e99-aa23-6c61cad1678e.jpg?v=1780378028","url":"https:\/\/shop.autorenwelt.de\/products\/the-shadow-economy-a-critical-analysis-von-dennis-ducke-gabor-ivanyi-mark-kan","provider":"Autorenwelt Shop","version":"1.0","type":"link"}