Does the shadow economy raise observed aggregate efficiency? A cross-country comparison

We analyze how adding the shadow economy to official output figures affects technical efficiency. We find that this only slightly affects the ranking of efficiency scores, but increases average efficiency. Our results are robust to the functional form of the production technology and the adjustment of labor to account for years of schooling.

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Year of publication:	2006
Authors:	Méon, Pierre-Guillaume ; Schneider, Friedrich G. ; Weill, Laurent ; Dreher, Axel
Publisher:	Linz : Johannes Kepler University of Linz, Department of Economics
Subject:	Schattenwirtschaft \| Technische Effizienz \| Produktivität \| Vergleich \| Welt \| shadow economy \| income \| aggregate productivity \| efficiency

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Series:	Working Paper ; 0609
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	747320454 [GVK] hdl:10419/73234 [Handle] RePEc:jku:econwp:2006_09 [RePEc]
Classification:	O11 - Macroeconomic Analyses of Economic Development ; O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements ; O47 - Measurement of Economic Growth; Aggregate Productivity ; O5 - Economywide Country Studies
Source:	EconStor

Persistent link: https://www.econbiz.de/10010294534