This article discusses the corrupt official and entrepreneurs. When entrepreneurs want to operate in the market, they have to purchase license from the official. In two-stage model, the official can take different prices of different types of entrepreneurs, and commits to his demand. We get the optimal demands of the official and critical types of entrepreneurs. In the framework with the shadow economy, the official is forced to decrease his demands. By examining the optimal demands and critical types, we found that the official¡¦s benefits decrease in the shadow economy.

Lietuvoje šešėlinės ekonomikos augimas pastaraisiais metais sulėtėjo, tačiau šešėlinės ekonomikos pozicijos mūsų šalyje yra pakankamai tvirtos ir daro neigiamą įtaką valstybės ekonomikos vystymuisi. Svarbu ištirti teorinius ir praktinius šešėlinės ekonomikos vertinimo, prevencijos aspektus, kadangi Lietuvoje nėra atliekamas pastovus šešėlinės ekonomikos vertinimas, o kova su šešėline ekonomika vykdoma naikinant pasekmes, bet ne priežastis, neužtikrinant efektyvios prevencijos. Magistro darbo tikslas išnagrinėti šešėlinės ekonomikos būklę ir įvertinti šešėlinės ekonomikos prevencijos priemones Lietuvoje. Tuo tikslu naudojant bendramokslinį loginės, sisteminės analizės, statistinės informacijos loginės analizės, lyginamosios analizės metodus, atskleista šešėlinės ekonomikos samprata, išnagrinėti šešėlinės ekonomikos Lietuvoje funkcionavimo mechanizmo ypatumai, pateikta šešėlinės ekonomikos vertinimo metodika, išanalizuoti šešėlinės ekonomikos Lietuvoje pokyčiai ir priemones jai mažinti. Darbą sudaro keturios pagrindinės dalys. Pirmojoje dalyje aptariama šešėlinės ekonomikos samprata, išnagrinėjami įvairūs sampratos aspektai. Antrojoje darbo dalyje atskleidžiami šešėlinės ekonomikos funkcionavimo mechanizmai – priežastys, kodėl šešėlinė ekonomika susiformuoja, ją sąlygojantys veiksniai, pasekmės valstybės ekonominiam gyvenimui. Trečiojoje darbo dalyje nagrinėjami metodai, kurie įvairiose šalyse naudojami šešėlinei ekonomikai identifikuoti ir įvertinti. Ketvirtoje darbo dalyje... [to full text] / The growth of shadow economy has recently slowed down in Lithuania, but the shadow economy still forms a great part of economy and is a loss for the society. It is important to analyze theoretical and practical aspects of shadow economy evaluation and prevention, because Lithuania’s government does not make periodical researches of shadow economy; the fight against the shadow economy is mostly against its results, not the reasons, not assuring efficient prevention of shadow economy. The aim of this Master Paper is to analyze measures and means of shadow economy minimizing. Seeking for this aim, and using the method of logical, systemic analysis, statistical information analysis, comparative analysis the shadow economy concepts, functional aspects, were analyzed, as well as the methods of shadow economy evaluation, the results of shadow economy in Lithuania and abroad, and means to minimize it. The Master paper contains four main parts. The first part analyzes theoretical and practical aspects of the concept „shadow economy”. The second part of the Paper presents the functional mechanism of shadow economy, theoretical theories describing the reasons and results of shadow economy. The third part analysis methods for shadow economy evaluation and measurement. The forth part of the Paper presents the research of shadow economy results in Lithuania and foreign countries; this part disuses means of shadow economy prevention used in Lithuanian and abroad. At the end of the forth... [to full text]

Purpose: The purpose is to investigate the size of the shadow economy within the EU, by studying undeclared work, bribery and tax evasion in 28 Member States in 2013, and answer the question how to better combat shadow economy. Research design: The study is a quantitative research as it uses data from existing surveys and a report. The collected data is analyzed by multiplying the number of respondents with the percentage of the issue in each Member State. Calculating all three issues for 28 Member States presents the size of the shadow economy in the EU in 2013. Findings: Research has found that shadow economy is present within the EU. The study shows that the size of shadow economy in 2013 is 17,6 %. Amongst the three issues, tax evasion was more extensive than the other two issues. Besides regulation, there are other considerable factors that contribute to the gap in the shadow economy. The findings show that EU has taken measures to combat these issues. However, the study finds other measures to be needed to combat shadow economy. Contribution: This study contributes to the research of shadow economy within the EU by focusing on three issues: undeclared work, bribery and tax evasion. The study is supposed to raise awareness to not neglect the issues but rather combat them in a cross-border effort as shadow economy is not only affecting each Member States at national level but also at EU-level.

This thesis deals with the measurement of tax evasion. The first part deals with the theory of tax evasion, its general, legislative and economic definition and its consequences. A special subsection is devoted to relation of the tax evasion and the shadow economy. The second part deals with the theory of tax evasion measurement and the last chapter focuses on shadow economy volume measurement and tax evasion measurement in the Czech Republic.

Trois essais sur la région MENA et l'économie informelle. / Informality is a social and economical phenomenon that has huge implications on societies. Over $3.1 trillion annually is lost to tax evasion worldwide (see The Tax Justice Network report). Informality means different things to different people. Sometimes this term is used to describe tax evasion and sometimes to refer to noncompliance with labor or regulations. Whatever definition is used, informality can be a serious problem in some countries, stifling investment, undermining the overall competetiveness of the whole economy and impeding growth. It could also be an important remedy in other countries playing a role as a mechanism of economic adjustment and source of livelihood for the poor and unemployed. Hart [1973] was the first anthropologist to observe, study and coin the word "informal economy" in his research in Accra and today’s literature is largely based on his work. Societies started acknowledging the importance of informality and then eventually economists, sociologists and anthropologists started analyzing its characteristics worldwide. […]

This thesis presents estimates of capital flight from Ukraine in the period 1994 to 2017. We use the World Bank Residual method to calculate capital flight as a residual difference between sources and uses of funds in the economy. Our findings show that pre-2014, capital flight amounted to 7.5 billion USD on average. On the contrary, in 2014 our method reports unrecorded capital inflow of 10.7 billion USD, which took place in times of economic recession and military conflict in the east of Ukraine. We analyze the factors that might have caused reverse capital flight, and consider that increase in remittance flows, growth of the black currency market and new niches in the underground economy might have had an effect on unrecorded capital inflows. Finally, we study the components of the World Bank Residual method, and suggest that capital flight might have taken forms that the method doesn't encompass. Therefore, we underline the importance of accounting for gaps in the method by adding trade misinvoicing estimates to capital flight volumes. Keywords Ukraine, Capital Flight, World Bank Residual Method, Balance of Payments, Shadow Economy Range of thesis: 89 886 Characters

Fragile states are characterized by institutions which do not have the political will or ability to reduce poverty in the interests of their citizen, to establish basic social security, to promote a successful development process, and to guarantee security and human rights. The regional disintegration processes after the period of imperialism and the fall of the iron curtain have created many new states, which still are politically unstable and unable for a sustainable development. In the literature such states are describes as "weak", "failing or failed", "collapsed", "conflict or post-conflict" - dependant on the extent of the particular state failure. Several indicators try to describe such states and partly allow for projections of the future development. Then the role of taxation is discussed in detail before recommendations for the development cooperation are presented. Obviously taxation plays a key role for the democratization process in fragile states.

Šešėlinę ekonomiką daug kas supranta kaip nelegalų verslą ar kontrabandą. Tai nėra tik vogtų daiktų realizavimas, prostitucija ar narkotikai, kuriuos privalo kontroliuoti policija ir kitos valstybės institucijos. Tačiau ir legalus verslas taip pat tampa šešėlinės ekonomikos dalimi, kai jos veiklos rezultatai falsifikuojami siekiant išvengti mokesčių. Tai neteisėti sandoriai, nerealios jų vertės ir panašiai. Iš tiesų, tai sudėtingas reiškinys, iškreipiantis oficialiąją statistiką, stabdantis ekonomikos augimą. Šio darbo tikslas nustatyti ekonominius faktorius, reikšmingai įtakoja Lietuvos šešėlinę ekonomiką. Darbo eigoje apibrėžiama šešėlinė ekonomika, jos sudedamosios dalys bei vertinimo metodikos. Tyrimo metu sudaromas Lietuvos šešėlinės ekonomikos MIMIC (Multiple Indicator Multiple Causal) modelis. Tikrinamas jo suderinamumas su turimais statistiniais duomenimis. Taip pat pateikiamos trys skirtingos MIMIC modelio specifikacijos, remiantis statistiniais kriterijais jos palyginamos ir randama priimtiniausia. / There is considerable agreement internationally about the factors that determine the relative size of the underground economy and that evidence of underground activity will be captured in several economic indicators. Until recently, however, the methods that have been employed to measure the underground economy focused on only a few causal factors, one indicator, and only produced an estimate for one particular point in time. This paper presents the modeling technique that threats the underground economy as an unobservable or latent variable and incorporates multiple indicator and multiple causal variables – MIMIC model. Moreover this technique allows us to estimate the significance of each causal variable as well as each indicator. First of all the theoretical definition of the shadow economy is proposed. Further the MIMIC modeling technique is described and the emphasis is laid on the most common variables used for latter method. Subsequently, the model is defined and the corresponding economical variables of Lithuanian are chosen. Whereupon the model is estimated and respecified while nonsignificant variables and relations been removed. Finally the conclusions about the most suitable model and statistically significant variables are maid.

Šio darbo tikslas – ištirti kaip vyksta naudotų automobilių verslas. Atliekant etnografiją paremtą antropologinį tyrimą ir analizuojant kasdienines automobilių turgaus erdvėje veikiančių dalyvių sąveikas bei tarpusavio santykius bus siekiama atsakyti į šiuos tyrimo klausimus: Kokie formaliai įvardinami ir neformaliai konstruojami žmonių, dalyvaujančių turgaus veikloje, tarpusavio santykių principai bei taisyklės struktūruoja turgaus veiklą ir apskritai dėvėtų automobilių verslą? Kiek egzistuojantys verslą reguliuojantys įstatymai iš vienos pusės, ir posovietiniai mąstymo ir verslo kultūros elementai iš kitos, modeliuoja dėvėtų automobilių verslą, jo sampratą ir legitimacijos būdus? Uždaviniai: 1. Aprašyti taisykles, struktūruojančias naudotų automobilių verslą ir turgų kaip bendro veikimo vietą, kaip verslo santykių modelį. 2. Aprašyti taisykles, pagal kurias yra konstruojami automobilių turgaus prekeivių tarpusavio santykiai. 3. Išsiaiškinti, kokią įtaką dėvėtų automobilių verslui ir turgaus funkcionavimui daro formalus (įstatyminis) ir neformalus (mąstymo ir verslo veiklos modeliavimo stereotipai, dominuojanti verslo kultūra) kontekstai. Šio darbo analizuojamas objektas yra Kauno automobilių turgaus prekiautojų kasdienybė. Apibendrinant atliktą tyrimą apie Kauno automobilių turgaus organizaciją – kaip atskirą instituciją, galima daryti prielaidą, kad turguje egzistuojantis šešėlinis verslas, yra tapęs kasdieniu kultūriniu reiškiniu. Formalių... [toliau žr. visą tekstą] / This research study entitled – The Everyday Practices of Traders at the Kaunas Car Market: A “balance” Between the Formal and Informal Rules of Behavior – articulates the process of selling and buying used cars in The Kaunas Car Market. Within this overall context I have included a comparison of the rules at play for buying and selling used cars in the German state of Hesse (Hessen). Thus, my study is designed as a pioneer work on commerce in used cars in a post-Soviet society – namely, the city of Kaunas and in a western society located in the city of Frankenberg/Eder geographically situated between the cities of Kassel and Frankfurt/Main in the Germany state of Hesse. A short comparison serves to highlight differences of behavior in a Lithuanian and a German setting. Anthropological research based on ethnographic study revealed distinct differences on rules of behavior between written regulations dictated by the state and actual practices among sellers and buyers. The timeliness of my work is reflected by a lengthy two page article entitled: “Jei bus išguita šešėlinė ekonomika, trečdalis Lietuvos mirs badu” [If the shadow economy is hunted out, a third of Lithuania will die of starvation]. This is the title in www.lrytas.lt on 22 May 2013 by Arturas Jancys. It is worth noting that Jancys is Kupiškio rajono apylinkės teismo administracijos sekretorius. The English language translation of his position is Kupiskis Region District Secretary for Court... [to full text]

The main aim of this paper is to measure the underground economy of India and to review previous attempts to do the same. In this paper I provide estimates of the size of the hidden economy of India for the period 1971 - 2004. Analysis on previous attempts is done with a focus on the dynamic multiple indicators multiple causes (DYMIMC) and the currency demand methods. I estimate the size of the Indian economy using indicator and causal variables chosen by Schneider, Chaudhuri and Chatterjee in their paper, “The Size and Development of the Indian Shadow Economy and a Comparison with other 18 Asian Countries: An Empirical Investigation”.