Model of the shadow economy emergence in the interaction between the state and population
Abstract
The shadow economy is inherent in all countries of the world. It penetrates into all spheres of economic relations. However, different opinions exist in the scientific literature about the usefulness of this phenomenon for society. In this article, the author proposed an extension of the game model relations between the state and the population, taking into account the influence of the shadow economy. The author investigates reasons for derivation and growth of the shadow economy, government influence on its formation and the influence of the shadow economy on social welfare. The study of this model shows the positive impact of population growth on the size of the shadow economy and the negative effect of the size of the shadow economy on social welfare in the case of non-cooperative strategy population. These results allow us to identify new mechanisms of size reduction of the shadow economy.
About the Author
A. V. Kostin
Institute of Economics and Industrial Engineering SB RAS, Novosibirsk
Novosibirsk State University, Novosibirsk
Russian Federation
Russian Federation
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Review
For citations:
Kostin A.V. Model of the shadow economy emergence in the interaction between the state and population. World of Economics and Management. 2014;14(1):15–26. (In Russ.)
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