Title
Casting a long shadow? Cross-border spillovers of shadow economy across American states
Document Type
Article
Publication Date
2015
Department/School
Economics
Publication Title
Public Finance Review
Abstract
This article examines the determinants of the shadow economy across American states, with emphasis on cross-border spillover effects. Results show positive spillovers of shadow activities across state borders with different specifications. In other effects, greater unionization in a state induces businesses to go underground, while states without a sales tax had a smaller shadow economy, ceteris paribus. Greater state product checked shadow growth, with military and nonmilitary state products having opposite effects. Finally, states bordering Canada and Mexico had different flows from the shadow sector.
ISSN
1091-1421
Volume
44
Issue
5
Pages
610-634
Link to Published Version
Recommended Citation
Goel, Rajeev K., & Saunoris, James W. (2015). Casting a long shadow? Cross-border spillovers of shadow economy across American states. Public Finance Review, 44(5), 610–634. doi:10.1177/1091142115584815