The devil is in the shadow

• Verfasst von: Dreher, Axel [VerfasserIn]
• Verfasst von: Méon, Pierre-Guillaume [VerfasserIn]
• Verfasst von: Schneider, Friedrich [VerfasserIn]
• Titel: The devil is in the shadow
• Titelzusatz: do institutions affect income and productivity or only official income and official productivity?
• Verf.angabe: Axel Dreher, Pierre-Guillaume Méon, Friedrich Schneider
• Jahr: 2014
• Jahr des Originals: 2012
• Umfang: 21 S.
• Fussnoten: Published online: 11 July 2012 ; Gesehen am 03.11.2020
• Titel Quelle: Enthalten in: Public choice
• Ort Quelle: Dordrecht [u.a.] : Springer Science + Business Media B.V., 1966
• Jahr Quelle: 2014
• Band/Heft Quelle: 158(2014), Seite 121-141
• ISSN Quelle: 1573-7101
• DOI: doi:10.1007/s11127-012-9954-8
• Datenträger: Online-Ressource
• Sprache: eng
• Bibliogr. Hinweis: Erscheint auch als : Druck-Ausgabe: Dreher, Axel, 1972 - : The devil is in the shadow. - 2014
• K10plus-PPN: 1737633639

Abstract

This paper assesses the relationship between institutions, output, and productivity when official output is corrected for the size of the shadow economy. Our results confirm the usual positive impact of institutional quality on official output and total factor productivity, and its negative impact on the size of the underground economy. However, once output is corrected for the shadow economy, the relationship between institutions and output becomes weaker. The impact of institutions on total (“corrected”) factor productivity becomes insignificant. Differences in corrected output must then be attributed to differences in factor endowments. These results survive several tests for robustness.