Professor Schneider's Shadow Economy: What Do We Really Know? A Rejoinder

Forthcoming in the Journal of Tax Administration, (2016 Vol. 2 No.2).

22 Pages Posted: 13 Jun 2016

See all articles by Edgar L. Feige

Edgar L. Feige

University of Wisconsin - Madison - Department of Economics

Date Written: June 10, 2016

Abstract

Professor Schneider’s “Comment” on my “Reflections” paper does not adequately address the key issues concerning the veracity of his findings, namely issues of documentation, normalization, calibration and replication. Further findings of inadequate documentation, suspicious normalization procedures, unexplained calibration errors and the inability to replicate the results; reinforces the conclusions of my original “Reflections” paper. Schneider’s Shadow Economy results suffer from conceptual flaws, arbitrary data manipulations and insufficient documentation for replication, questioning their place in the academic, policy and popular literature.

Keywords: Shadow Economy, tax evasion, non-observed economy, unobserved economy, Friedrich Schneider, MIMIC models

JEL Classification: E26, O17, H26, E41, C51, C82, K42

Suggested Citation

Feige, Edgar L., Professor Schneider's Shadow Economy: What Do We Really Know? A Rejoinder (June 10, 2016). Forthcoming in the Journal of Tax Administration, (2016 Vol. 2 No.2)., Available at SSRN: https://ssrn.com/abstract=2793919

Edgar L. Feige (Contact Author)

University of Wisconsin - Madison - Department of Economics ( email )

1180 Observatory Drive
Madison, WI 53706
United States

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