Corruption, public finances, and the unofficial economy

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Johnson, Simon; Kaufmann, Daniel; Zoido-Lobaton, Pablo;
(1999)
  • Subject: Environmental Economics&Policies,Knowledge Economy,Economic Theory&Research,Public Sector Economics&Finance,Banks&Banking Reform,Environmental Economics&Policies,Economic Theory&Research,Public Sector Economics&Finance,National Governance,Governance Indicators

The authors found that, in post-communist economies, the unofficial economy's share of GDP is determined by the extent of control rights held by bureaucrats and politicians. Exploring in detail the role of taxation and bribery, and using data from an expanded data set o... View more
  • References (10)

    3 De Soto(1989).

    4 KaufmannandKaliberda(1996);Kaufmann(1997);Loayza(1996) , .......... ~~~. ~~...~............... .........

    11997!Executivesr'esponsetso thequestion":Exceptingthestate-controllesdector,stateinterferencien privatebusiness' ispervasiv(eminimal).("v2.04). Notethata higherscoremeanslessinterferenc1e1-7).

    97Eeuie'rsosst h usin Gvrmn euain (v2.08).Notethat ahigherscoremeanslessdiscretion(1-7).

    197Countries with lower(highers)coresfulfillmore(lesso)f thefollowingconditionsthat theymet. Notethat a higher ivaluemeanslessfree(1-5). a licenserequiredto operatea businessI?s it easyto obtain? Is therecorruptionwithinthebureaucracy? Doesthegovernmenf otrcebusinessetos subscribteo establishewdorkweeks, paidvacationsm,aternity ~~~~~et~c.~?~-~~~~leave,

    I1995§ rethr freebusinesseosrcooperatives? 1Original sourcesF: reedomHouseS,urveyof PoliticaRlightsandCivilLiberties1995-96,item9 ontheirchecklist !of 13civillibertiesw,ithsomeadjustments.

    ~ Note_that_haigherscoremeansmorefreedoms,coresgofrom(1-10).

    1997 !Executivesr'esponsetso thequestion":Minimumwageregulationasrea barrierto (donotsignificantl yincrease !the costsof)Ihiringunskilledoryoungworkers."1v7.08).Notethat a higherscoremeanslessregulation11-7).

    1997 :Executivesr'esponsetso thequestion":Hiringandfiringpracticesareseverelyrestrictedby governmen(tare iflexiblydeterminebdyemployers.1"v7.09).Notethat a higherscoremeanslessregulation(1-7).

    :1997 'Executives'responsetsothequestion":Laboregulationismpede(facilitatet)headjustmenotf workinghoursto :meetunexpectecdhangesin demand.("v7.10l. Notethat a higherscoremeanslessregulation11-71.

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