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Mr. Friedrich Schneider and Dominik Enste

rates are more relevant to people’s shadow-economy work decisions than are average tax rates; replacing direct taxes with indirect taxes is unlikely to improve tax compliance. More frequent tax audits and heavier penalties for tax evasion may reduce the size of the shadow economy. Governments should put more emphasis on legalizing certain shadow economy activities, for example by liberalizing the labor market. Reforms that liberalize regulations and make the economy more competitive reduce the incentives for corruption, and encourage firms to move

Mr. Friedrich Schneider and Dominik Enste

Abstract

Examines the role of the shadow, or underground, economy. Looks at ways of measuring it, the relationship between the shadow economy and the main stream economy, why it has been growing in size, and its effects on overall economic growth. How can states limit the size of the shadow economy, and does it matter that it exists?

Mr. Friedrich Schneider and Dominik Enste

Abstract

Examines the role of the shadow, or underground, economy. Looks at ways of measuring it, the relationship between the shadow economy and the main stream economy, why it has been growing in size, and its effects on overall economic growth. How can states limit the size of the shadow economy, and does it matter that it exists?

Mr. Friedrich Schneider and Dominik Enste

Abstract

Examina el papel de la economía sumergida, o economía subterránea. Analiza la forma de medirla, la relación entre la economía sumergida y la economía formal, las razones por las cuales está creciendo en tamaño, y sus efectos en el crecimiento económico general. ¿Cómo pueden los Estados medir la economía sumergida, y es importante su existencia?

Mr. Friedrich Schneider and Dominik Enste

Abstract

Examines the role of the shadow, or underground, economy. Looks at ways of measuring it, the relationship between the shadow economy and the main stream economy, why it has been growing in size, and its effects on overall economic growth. How can states limit the size of the shadow economy, and does it matter that it exists?

Mr. Friedrich Schneider and Dominik Enste

Abstract

Ce document examine le rôle de l'économie de l'ombre, ou économie souterraine. Elle aborde les moyens d'en mesurer l'ampleur, les liens entre l'économie souterraine et l'économie officielle, les raisons de sa croissance, et ses effets sur la croissance économique globale. Comment les États peuvent-ils limiter la taille de l'économie souterraine, et son existence pose-t-elle problème ?

Mr. Friedrich Schneider and Dominik Enste

Abstract

Examines the role of the shadow, or underground, economy. Looks at ways of measuring it, the relationship between the shadow economy and the main stream economy, why it has been growing in size, and its effects on overall economic growth. How can states limit the size of the shadow economy, and does it matter that it exists?

Ms. Anastasia Guscina, Sheheryar Malik, and Mr. Michael G. Papaioannou

Fiscal Vulnerability Indicators in Selected Countries Boxes 1. Tapping Markets in Times of Plenty 2. Market Access and Debt Sustainability—Differences and Similarities Annexes I. Determining LMA in Empirical Work—Decision Rule II. Past LMA Episodes Identified Through Application of the Decision Rule III. Signaling Approach for Identifying Vulnerability Indicators IV. Risk Zone Classification—Example for Spreads V. Extracting Information from the Term Structure of Distressed Bond Prices VI. Restructuring Scenarios Conditional on the Market’s Expected

Mr. Robert A Feldman

stimulus from lower interest rates is exhausted. On the supply side, savings, investment, and work decisions would be distorted by false price signals, both at home and abroad. Partly as a consequence of widespread evasion of external capital controls, many industrial countries have removed them. In countries with relatively strong balances of payments in the 1970s, such as the Federal Republic of Germany, Japan, and Switzerland, capital controls were adjusted periodically to limit capital inflows and their effects on domestic liquidity. Common measures included 100

International Monetary Fund

expect, but also increase more than proportionally with the number of children. This last feature has not paid off since Slovenia’s fertility rate is the lowest in Europe. The benefits outlined in this chapter do not cover the whole set available in Slovenia. For instance maternity leave and childcare assistance also play an important role. However, the benefits the chapter focuses on are the ones that affect work decisions directly and are easily tractable for calculating METRs. Unemployment Unemployment Guaranteed Insurance Benefit (UB