TY  - RPRT
        AU  - Goel, Rajeev K.
AU  - Saunoris, James W.
AU  - Schneider, Friedrich
        TI  - Drivers of the Underground Economy around the Millienium: A Long Term Look for the United States
        PY  - 2017/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10857
        UR  - https://www.iza.org/publications/dp10857
        AB  - This paper provides a long term analysis of the determinants of the shadow economy. Using data for the United States over the years 1870–2014 we examine economic and political factors driving the underground sector. Results show that among the economic factors, greater economic prosperity increased the shadow sector, while greater openness to trade and a bigger government reduced it, with the effects of inflation being statistically insignificant. Politically, the efficacy of presidential vetoes and the effect of congressional party homogeneity are statistically insignificant. Further, the U.S. shadow economy increased during both world wars, but was lower during the great depression. However, in the short run, the relationship between the shadow economy and its determinants exhibit some remarkable differences. 
        KW  - shadow economy
KW  - underground economy
KW  - determinants
KW  - taxation
KW  - inflation
KW  - openness
KW  - world war
KW  - great depression
        ER  -