Not only has the shadow economy obviously been growing much more rapidly than the official economy in the Western industrialised countries, it also appears to have a growth cycle of its own, running counter to the official economy's growth cycle. This raises a number of important questions for...

The underground economy crucially affects growth and unemployment in both developed and developing countries. Nevertheless, this widespread phenomenon does not appear in the basic model for macroeconomic analysis, namely the Aggregate Demand-Aggregate Supply (or simply AD-AS) model. Therefore,...

This paper develops a four-sector equilibrium search and matching model with informal sector employment opportunities and educational choice. We show that underground activities reduce educational attainments if informal employment opportunities mainly are available for low-educated workers. A...

This study aims to reveal the connection between corruption and shadow economy, on one hand, and deforestation, on the other. The research considers 131 countries from all over the world, in the timeframe between the years 2012 and 2020, and it reveals that corruption and shadow economy...