USEFUL GOVERNMENT EXPENDITURE INFLUENCE ON THE SHADOW ECONOMY

• Authors: Paulina Malaczewska
• Languages of publication: EN

Abstracts

EN

This paper contains the attempt to describe the phenomenon of shadow economy as a zero-sum non-cooperative, normal form game between households and the government. In the model government spending can be treated as a government consumption or as an expenses that contribute to increased social welfare and for the provision of public goods and services. We conduct sensitivity analysis of Nash equilibrium in models with two different types of government expenditure and examine whether proposed models indicate a various mechanisms and determinants of the undeclared economic activity.

Keywords

EN

shadow economy; useful government expenditure; game theory; Nash equilibrium

• Publisher: Katedra Ekonometrii i Statystyki, Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
• Journal: Metody Ilościowe w Badaniach Ekonomicznych
• Year: 2013
• Volume: 14
• Issue: 2
• Pages: 61-69

Dates

published

2013

Contributors

author

Paulina Malaczewska

• Department of Econometrics, University of Lodz

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