The Shadow Economy

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Focusing on the shadow economy, this work reveals its significant impact, constituting about one-tenth of the UK's economic activity and over a quarter in some European nations. The authors, prominent researchers, delve into methods for measuring this hidden sector and explore its correlation with taxation, regulation, and legal frameworks. They highlight the importance of these factors in addressing the shadow economy and propose practical policy solutions to mitigate its effects, offering insights for policymakers and economists alike.