Restricting Shadow Economy versus Macroeconomic Impacts. A Panel Data Analysis in EU, Japan, USA

It seems to be a trade-off between shadow economy restriction and macroeconomic repercussions. This view is expressed by (Era Dabla-Norris and Andrew Feltenstein, 2003) and is in agreement with the author of the present paper although approached in a different way. Author believes that present paper will trigger further research on the definition of shadow economy indicators as well as on the cost-benefit analysis in order to reach the “optimum” size of shadow economy, as mentioned in (Era Dabla-Norris and Andrew Feltenstein, 2003). Data are taken from Eurostat and (Schneider et al., 2010); (Schneider, 2013). The elaboration of these panel data is made feasible by means of the Eviews software package