NĚMEC, Daniel, Eva KOTLÁNOVÁ, Igor KOTLÁN and Zuzana MACHOVÁ. Corruption, Taxation and the Impact on the Shadow Economy. ECONOMIES. BASEL: MDPI, 2021, vol. 9, No 1, p. 1-16. ISSN 2227-7099. Available from: https://dx.doi.org/10.3390/economies9010018.
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Basic information
Original name Corruption, Taxation and the Impact on the Shadow Economy
Authors NĚMEC, Daniel (203 Czech Republic), Eva KOTLÁNOVÁ (203 Czech Republic, belonging to the institution), Igor KOTLÁN (203 Czech Republic) and Zuzana MACHOVÁ (203 Czech Republic).
Edition ECONOMIES, BASEL, MDPI, 2021, 2227-7099.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50202 Applied Economics, Econometrics
Country of publisher Switzerland
Confidentiality degree is not subject to a state or trade secret
WWW URL databáze Scopus
RIV identification code RIV/47813059:19520/21:A0000254
Organization unit School of Business Administration in Karvina
Doi http://dx.doi.org/10.3390/economies9010018
Keywords in English corruption;perceived corruption;DSGE modelling;taxation;tax evasion;shadow economy
Changed by Changed by: Ing. Eva Kotlánová, Ph.D., učo 48775. Changed: 4/1/2022 16:46.
Abstract
While assessing the economic impacts of corruption, the corruption-related transmission channels which influence taxation as such have to be duly considered. Taking the example of the Czech Republic, this article aims to evaluate the impacts corruption has on the size of the shadow economy as well as on the individual sources of long-term economic growth, making use of a transmission channel through which corruption affects the tax burden components. Using the method of an extended DSGE model, it confirms the initial assumption that an increase in perceived corruption supports the shadow economy's growth, but at the same time, it demonstrates that corruption and especially its perception has a significantly different effect on two key areas-the capital accumulation and the labour force size. It further identifies another sector of the economy representing taxes which are prone to tax evasion while asserting that corruption has a much more destructive effect on this sector of the economy, offering generalized implications for other post-communist EU member states in a similar situation.
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