A Critical Evaluation of the Policy Options Towards the Undeclared Economy

Article English OPEN
Williams, C.C. (2013)
  • Publisher: Addleton Academic Publishers

To evaluate critically the policy options available for tackling the undeclared economy, this paper commences by evaluating the implications of four hypothetical policy choices, namely doing nothing, de-regulating the declared economy, eradicating the undeclared economy, or moving undeclared work into the declared economy. Finding that a combination of all these is required, a typology of policy measures for tackling the declared economy is then outlined. Drawing inspiration from the literature on eliciting behavior change in organizations, this identifies that the shift from direct controls (deterrents and incentives) to indirect controls (which engender a commitment to individual self-governance) can be scaled up to the societallevel to elicit behavior change in relation to undeclared work. To shift towards the pursuit of individual self-governance as a means of achieving collective self-governance, a multi-pronged approach is called for which seeks to change both the codified laws and regulations of formal institutions and the norms, values and beliefs that constitute the informal institutions of a society in order to create symmetry between them. The paper concludes by discussing the various ways of combining and sequencing direct and indirect controls in a manner that foregrounds the centrality of individual self-governance to the achievement of collective self-governance.
  • References (79)
    79 references, page 1 of 8

    Abbott, K. W., and D. Snidal (2013), “Taking Responsive Regulation Transnational: Strategies for International Organisation,” Regulation and Governance 7(1): 95- 113.

    Adom, K. (2014), “Beyond the Marginalization Thesis: An Examination of the Motivations of Informal Entrepreneurs in Sub-Saharan Africa - Insights from Ghana,” International Journal of Entrepreneurship and Innovation 15(2): 113-125.

    Adom, K., and C. C. Williams (2014), 'Evaluating the Explanations for the Informal Economy in Third World Cities: Some Evidence from Koforidua in the Eastern Region of Ghana,” International Entrepreneurship and Management Journal 10 (2): 427-445.

    Ahmed, E., and V. Braithwaite (2005), “Understanding Small Business Taxpayers: Issues of Deterrence, Tax Morale, Fairness and Work Practice,” International Small Business Journal 23(5): 539-68.

    Allingham, M., and A. Sandmo (1972), “Income Tax Evasion: A Theoretical Analysis,” Journal of Public Economics 1(2): 323-38.

    Alm, J. (2011), “Designing Alternative Strategies to Reduce Tax Evasion,” in M. Pickhardt and A. Prinz (eds.), Tax Evasion and the Shadow Economy. Cheltenham: Edward Elgar, 13-32.

    Alm, J., and B. Torgler (2011), “Do Ethics Matter? Tax Compliance and Morality,” Journal of Business Ethics 101: 635-51.

    Alm, J., B. Jackson, and M. McKee (1993), “Fiscal Exchange, Collective Decision Institutions and Tax Compliance,” Journal of Economic Behaviour and Organization 22: 285-303.

    Alm, J., I. Sanchez, and A. De Juan (1995), “Economic and Non-economic Factors in Tax Compliance,” Kyklos 48: 3-18.

    Alm, J., E. Kirchler, M. Muelhbacher, K. Gangil, E. Hofmann, C. Logler, and M. Pollai (2012), “Rethinking the Research Paradigms for Analyzing Tax Compliance Behavior,” CESifo Forum 10: 33-40.

  • Metrics
    views in OpenAIRE
    views in local repository
    downloads in local repository

    The information is available from the following content providers:

    From Number Of Views Number Of Downloads
    White Rose Research Online - IRUS-UK 0 67
Share - Bookmark