Publication details
Shadow Economy in the Czech Republic: MIMIC Approach
| Authors | |
|---|---|
| Year of publication | 2016 |
| Type | Article in Proceedings |
| Conference | 6th International Scientific Conference TAXES IN THE WORLD |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | Shadow Economy; MIMIC model; Czech Republic; Regional study; Tax burden. |
| Description | This paper focus primarily on regional-level variations in the size of the shadow economy of the Czech Republic. It presents estimates of the shadow economy for all 14 Czech regions (including the capital city) over the period 2007-2014. The multiple indicators multiple causes (MIMIC) model was used to obtain the results with tax burden, government spending, unemployment, and number of foreigners as determinants of the shadow economy, and electricity consumption, change in labor force participation, and GDP per capita as indicators. Among the regions, the regions surrounding big cities, especially the capital and the biggest city Prague, are those, on average, with the lowest shadow economy at 14.9 % of GDP. On the other side of the ranking are regions on the borders, especially regions on the west that have common border with Germany. Region Karlovy Vary is the region with the largest shadow economy in the Czech Republic as a percent of GDP (19.0 %). |
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