Tax Evasion and the Black Economy

Abstract

Part 1 Measuring the size of the black economy - monetary approaches: the currency ratio the transactions method currency holdings and the big bill phenomenon. Part 2 Monetary statistics and the black economy - some evidence: the black economies of North America and Europe. Part 3 Non-monetary approaches to measuring the black economy: differences between income and expenditure at the household and national levels labour market studies the soft modelling approach. Part 4 Participation in the black economy - theory: portfolio models of income tax evasion models of tax evasion with endogenous income some criticisms and developments of the economic model. Part 5 Participation in the black economy - evidence: surveys of the tax-payers' attitudes experimental tax games econometric studies. Part 6 The consequences of tax evasion and the black economy: tax revenue losses macroeconomic issues microeconomic issues. Part 7 Policy issues: tax law enforcement alternative policy options The Keith Report - a case study.