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Middle East and Central Asia > Qatar

You are looking at 1 - 2 of 2 items for :

  • Type: Journal Issue x
  • Formal and Informal Sectors; Shadow Economy; Institutional Arrangements x
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Cover IMF Working Papers
Nonlinearity Between the Shadow Economy and Level of Development
Dong Frank Wu
and
Mr. Friedrich Schneider
This paper is the first attempt to directly explore the long-run nonlinear relationship between the shadow economy and level of development. Using a dataset of 158 countries over the period from 1996 to 2015, our results reveal a robust U-shaped relationship between the shadow economy size and GDP per capita. Our results imply that the shadow economy tends to increase when economic development surpasses a given threshold or at least does not disappear. Our findings suggest that special attention should be given to the country’s level of development when designing policies to tackle issues related to the shadow economy.
Keywords:
WP; shadow economy size; size of the shadow economy; shadow economy data; labor market; Shadow Economy; Level of Development; Nonlinearity; GDP per capita; causes of the shadow economy; shadow economy driver; shadow economy's determinant; shadow economy while; Informal economy; Tax incidence; Inflation; Global
Cover IMF Working Papers
Institutional Quality, Knightian Uncertainty, and Insurability: A Cross-Country Analysis
Mr. S. Nuri Erbas
and
Chera L. Sayers
Knightian uncertainty (ambiguity) implies presence of uninsurable risks. Institutional quality may be a good indicator of Knightian uncertainty. This paper correlates non-life insurance penetration in 70 countries with income level, financial sector depth, country risk, a measure of cost of insurance, and the World Bank governance indexes. We find that institutional quality-transparency-uncertainty nexus is the dominant determinant of insurability across countries, surpassing the explanatory power of income level. Institutional quality, as it reflects on the level of uncertainty, is the deeper determinant of insurability. Insurability is lower when governance is weaker.
Keywords:
WP; insurance coverage; insurability; life insurance