Explaining the Prevalence of the Informal Economy in the Baltics: An Institutional Asymmetry Perspective

European Spatial Research and Policy, Vol. 22, No. 2, pp. 127-144, 2015

27 Pages Posted: 13 Dec 2016 Last revised: 11 Jan 2017

See all articles by Colin Williams

Colin Williams

University of Sheffield - School of Management

Ioana Alexandra Horodnic

University of Sheffield - School of Management

Date Written: 2015

Abstract

The aim of this paper is to map the spatial variations in the size of the shadow economy within Brussels. Reporting data provided by the National Bank of Belgium on the deposit of high denomination banknotes across bank branches in the 19 municipalities of the Brussels-Capital Region, the finding is that the shadow economy is concentrated in wealthier populations and not in deprived or immigrant communities. The outcome is a call to transcend the association of the shadow economy with marginalized groups and the wider adoption of this indirect method when measuring spatial variations in the shadow economy.

Keywords: Informal Sector, Tax Morale, Social Contract, Institutional Analysis, Baltics

JEL Classification: H26, J46, J48, K34, K42, O17, P37

Suggested Citation

Williams, Colin and Horodnic, Ioana Alexandra, Explaining the Prevalence of the Informal Economy in the Baltics: An Institutional Asymmetry Perspective (2015). European Spatial Research and Policy, Vol. 22, No. 2, pp. 127-144, 2015, Available at SSRN: https://ssrn.com/abstract=2883491

Colin Williams (Contact Author)

University of Sheffield - School of Management ( email )

15 Conduit Road
Sheffield, S10 1FL
United Kingdom

HOME PAGE: http://https://www.sheffield.ac.uk/management/staff/williams/index

Ioana Alexandra Horodnic

University of Sheffield - School of Management ( email )

Conduit Rd
Sheffield, S10 1FL
United Kingdom

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