The Shadow Economy and Morals: A Note

by Ekkehart Schlicht

W. Gaertner and A. Wenig (eds.): The Economics of the Shadow Economy, Springer-Verlag: Berlin-Heidelberg-New York-Tokyo 1984, 265-271.

Abstract

If the established rules are obeyed spontaneously in an economy, this increases economic efficiency since the uncertainties, monitoring costs and incentive problems induced by opportunism can be avoided. Opportunism will be increasedby increasing the incentives for unlawful behaviour, however, and a slight increase in these incentives might cause a cumulative and self-nourishing breakdown of morals. The dangers of the growing shadow economy are louring here.

Keywords: shadow economy, business morality, critical mass, taxation, tax compliance

 




Professor Dr. Ekkehart Schlicht: Veröffentlichungen/Publications
 

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