nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2014‒10‒13
six papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Rethinking the Informal Labour from an Evolutionary Point of View By Renginar DAYANGAÇ; Bilge ÖZTÜRK
  2. Homeownership, Informality and the Transmission of Monetary Policy By Ceyhun Elgin; Burak R. Uras
  3. Indeterminacy, Underground Activities and Tax Evasion By Enrico MARCHETTI; Francesco BUSATO; Bruno CHIARINI; Enrico MARCHETTI
  4. Tax Compliance and Public Goods Provision -- An Agent-based Econophysics Approach By S. Hokamp; G. Seibold
  5. Thinking About Corruption in Greece By Costas Azariadis; Yannis M. Ioannides
  6. Fostering Inclusive Growth in Turkey by Promoting Structural Change in the Business Sector By Rauf Gönenç; Oliver Röhn; Vincent Koen; Fethi Öğünç

  1. By: Renginar DAYANGAÇ; Bilge ÖZTÜRK
    URL: http://d.repec.org/n?u=RePEc:ekd:000238:23800027&r=iue
  2. By: Ceyhun Elgin; Burak R. Uras
    Date: 2014–09
    URL: http://d.repec.org/n?u=RePEc:bou:wpaper:2014/09&r=iue
  3. By: Enrico MARCHETTI; Francesco BUSATO; Bruno CHIARINI; Enrico MARCHETTI
    URL: http://d.repec.org/n?u=RePEc:ekd:002596:259600113&r=iue
  4. By: S. Hokamp; G. Seibold
    Abstract: We calculate the dynamics of tax evasion within a multi-agent econophysics model which is adopted from the theory of magnetism and previously has been shown to capture the main characteristics from agent-based based models which build on the standard Allingham and Sandmo approach. In particular, we implement a feedback of public goods provision on the decision-making of selfish agents which aim to pursue their self interest. Our results imply that such a feedback enhances the moral attitude of selfish agents thus reducing the percentage of tax evasion. Two parameters govern the behavior of selfish agents, (i) the rate of adaption to changes in public goods provision and (ii) the threshold of perception of public goods provision. Furtheron we analyze the tax evasion dynamics for different agent co mpositions and under the feedback of public goods provision. We conclude that policymakers may enhance tax compliance behavior via the threshold of perception by means of targeted public relations.
    Date: 2014–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1409.8528&r=iue
  5. By: Costas Azariadis; Yannis M. Ioannides
    Abstract: The paper addresses the issue of corruption, which appears to be endemic in Greece. It reviews the facts about corruption as multi-faceted phenomenon and its close relationship to tax evasion, by comparing Greece to its EU partners, as well internationally. It addresses corruption as an instance of anti-social behavior by means of a number of simple metaphors that allow reliance on powerful tools of modern social interactions and property rights literatures. It emphasizes that whereas tepid enforcement might reduce somewhat corruption and other instances of anti-social behavior, drastic enforcement is required to move an economy and society to qualitatively different levels of such practices. The paper reviews different EU proposals regarding enforcement mechanisms and pro- poses three key constitutional amendments that are required to allow long-delayed reforms to take hold in Greece.
    Keywords: Bribery, compliance, constitutional amendments, corruption, corruption perception index, economic growth, fiscal deficits, games, multiple equilibria, public goods, tax evasion, trust, whistleblowing
    URL: http://d.repec.org/n?u=RePEc:tuf:tuftec:0783&r=iue
  6. By: Rauf Gönenç; Oliver Röhn; Vincent Koen; Fethi Öğünç
    Abstract: Turkey’s business sector dynamism has underpinned broad-based and inclusive growth in the 2000s. However, the business sector is highly segmented, with a relatively small core of modern high-productivity corporations, and myriad small, less formal and low-productivity entities. This hampers efficient resource allocation and tends to entrench social inequalities. It also makes it difficult to build on-the-job human capital for the large number of low-skilled. This segmentation needs to be overcome to raise productivity in the informal, low-skill and low-productivity sector, and to facilitate resource transfers from low to higher productivity businesses. This ought to be achieved by aligning Turkey’s formal regulatory and tax framework with OECD best practice, rather than through “second-best” arrangements where noncompliance with rules co-exists with selective subsidies to parts of the formal sector. Labour market and business taxation reforms are particularly important to enable all categories of enterprises to operate flexibly on a rule-based, level playing field and to achieve productivity enhancing and socially inclusive restructuring. Promouvoir une croissance inclusive en Turquie en favorisant des évolutions structurelles dans le secteur des entreprises Pendant les années 2000, le dynamisme du secteur des entreprises a alimenté une croissance inclusive reposant sur une large assise. Cependant, il s’agit d’un secteur fortement segmenté, où coexistent un noyau relativement restreint d’entreprises modernes, très productives, et une myriade de petites entreprises moins formelles et à faible productivité. Cette dualité empêche une affectation efficiente des ressources et a tendance à figer les inégalités sociales. Elle rend également difficile la constitution de capital humain sur leur lieu de travail pour les nombreuses personnes faiblement qualifiées. Il faut dépasser cette segmentation afin de relever la productivité dans le secteur informel où le niveau de la productivité et des qualifications est bas, et faciliter les transferts de ressources des secteurs à faible productivité vers ceux où elle est plus élevée. Pour ce faire il conviendrait d’aligner le cadre réglementaire et fiscal formel sur les meilleures pratiques de l'OCDE plutôt que de tolérer le non-respect de la réglementation tout en octroyant des subventions sélectives à certains segments du secteur formel. Il est particulièrement important de réformer le marché du travail et le système d’imposition pour permettre à toutes les catégories d’entreprises de travailler de manière flexible, au sein d’un environnement fondé sur le respect de règles applicables à tous, et d’opérer une restructuration propre à favoriser l’amélioration de la productivité et la cohésion sociale.
    Keywords: productivity, taxation, labour markets, Turkey, growth, informality, structural change, changement structurel, marchés du travail, informalité, Turquie, productivité, croissance
    JEL: J2 J3 O1 O4 O5
    Date: 2014–09–16
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1161-en&r=iue

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