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