The exact linear dependency among age, period and birth cohort makes it impossible to recover the true parameters of Age-Period-Cohort (APC) models. We then propose to extract reliable information from APC models via the Shapley decomposition, a model-agnostic procedure from game theory that...

The Tax-to-GDP ratio is an important tool for both economists and policymakers. Despite its pivotal role, this indicator is measured and analyzed without due attention to the potential biases stemming from the so called non-observed economy. This note aims at filling this gap, pointing out the...

The Tax-to-GDP ratio is an important tool for both economists and policymakers. Despite its pivotal role, this indicator is measured and analyzed without due attention to the potential biases stemming from the so called non-observed economy. This note aims at filling this gap, pointing out the...

We develop a general theoretical model to compare two different policymakers both facing tax evasion. Policymakers differs in that they aim to maximize either the fiscal revenues (T ) as in a social-democracy as, e.g., Sweden, or the GDP as in a capitalistic country as, e.g., the USA. Both...

This paper examines the emergence of economic clubs and its coherence with the European commitments by analysing business cycle comovements in six industrialised economies, which are pooled into four different clusters. Starting from turning points chronologies, a binary measure of association...

The government influences the equilibrium size of hidden activity. Higher taxes give an incentive to evade. The provision of public services, social transfers and public employment may have offsetting effects on the underground economy. The budget constraint makes the relation between the shadow...

Using data from the Business Surveys Unit of the European Commission as a long-running-continental-scale experiment, this paper examines how, and how accurately, people assess economic systems. Data show both commonsense (e.g. people know the past better than the future) and puzzling results...